Asset Management Reportfor the 7th FP
From July 1, 2020 to December 31, 2020

Canadian Solar Infrastructure Fund, Inc.

〈 Yukon River, Canada 〉

2-1-1 Nishi-Shinjuku, Shinjuku-ku,
Tokyo 163-0450 Japan
https://www.canadiansolarinfra.com/

Canadian Solar Infrastructure Fund, Inc. aims to advance theto build a more sustainable economy and society at a local

widespread adoption and use of renewable energy
community level whilst contributing to the global environment.

To Our Investors
On behalf of the Canadian Solar Infrastructure

review, we had a portfolio of 23 properties（total

is an increase of 47 yen from the forecast andFund, Inc.（hereinafter referred to as “CSIF”）, I would

panel output 123.0MW, total valuation price 48.89

distributions in excess of earnings of 601 yen

like to express sincere appreciation to all unitholders

billion yen）and continued being the largest listed

which is decreased by the same amount.

for their continued patronage and support.

infrastructure fund. Additionally, on March 8, 2021,

Expected distribution per unit for the 8th period

CSIF acquired CS Hiji-machi Dai-ni Power Plant and（January 1, 2021 to June 30, 2021）, the 9th

properties and, as of the end of the previous fiscal

CS Ogawara-machi Power Plant, increasing assets

period（July 1, 2021 to December 31, 2021）and

period, we had a portfolio of 21 properties（total

under management to 25 properties, with a total

the 10th period（January 1, 2022 to June 30,

panel output 119.7MW, total valuation price 49.58

panel output of 183.9MW and total valuation price of2022）are 3,700 yen, 3,750 yen and 3,750 yen

billion yen）and continued being the largest listed

80.21 billion yen. Operating income for the fiscal

respectively.

infrastructure fund.

period under review fell short of the initial forecast,

In the previous fiscal period, CSIF acquired no new

CSIF aims to achieve efficient investment,

In the 7th fiscal period, operating revenue wasreflecting lower than initially anticipated actual

taking advantage of the vertical integration model

2,413 million yen, operating income was 858 million

energy output as well as higher expenses such asof the Canadian Solar Group, and to advance theyen, and ordinary income was 717 million yen. In the

power plant operating expenses and repair expenses.

widespread adoption and use of renewable energy

fiscal period under review, CSIF acquired two

Net income exceeded the initial forecast due to lower

to build a more sustainable economy and society

properties with borrowing and cash on hand on

than initially anticipated investment-related expenses

at a local community level whilst contributing toSeptember 28, 2020（panel output 3.3 MW,

and revision of the purchase price of CS Mashiki-

the global environment.

acquisition price 888 million yen. As a result of themachi Power Plant. The forecast distribution per unit

acquisition of the photovoltaic power generationis 3,700 yen, unchanged from the initial forecast. This

continued understanding and support of all

facilities, as of the end of the fiscal period underis comprised of profit distribution of 3,099 yen, whichunitholders.

In pursuit of these initiatives, we expect the
Executive Director
Canadian Solar Infrastructure Fund, Inc.
CEO and Representative Director Canadian
Solar Asset Management K.K.

Tetsuya Nakamura

Contents

DPU for the 7th FP

JPY

3,700

Forecasted DPU for the 8th FP

Forecasted DPU for the 9th FP

Forecasted DPU for the 10th FP

JPY

JPY

JPY

3,700

3,750

3,750

01
02
03
04
05
10
12

To Our Investors
Canadian Solar Group
Unique Aspect of the Fund
Highlight of the 7th FP
Management Interview
Portfolio
Portfolio Overview

14
15
16
17
18
58
60

Sponsor Pipeline
Effort in ESG
Financial Summary
Information for Unitholders
Asset Management Report
Balance Sheet
Statement of Income

61 S tatement of Changes inUnitholders’ Equity
62 Notes
74 S tatement of Cash Distribution
76 Statement of Cash Flow

1

Canadian Solar Group

Unique Aspects of the Fund
Advantageous Operation Based on the Vertically-Integrated Model of the Group

History and Accomplishment of the Group
2001

Founded in Ontario, Canada, as a solar panel
manufacturer

2006

Listed on NASDAQ（CSIQ）
14,000 employees globally as of today

2009Entered into the Japan market for sales of PV
modules（by Canadian Solar Japan K.K.）

2013

Prominent knowledge acquired by the Group as the total solution provider of solar power generation is fully utilized for the

Share ofshipping PV modules
2019 Global share Top 5

2016

Established Canadian Solar Asset Management
K.K., the asset management of the fund, as 100%
subsidiary of Canadian Solar Project K.K.

2017

Listed Canadian Solar Infrastructure Fund, Inc. onTokyo Stock Exchange

#1

2020

46

Started development business of solar power
plant in Japan（by Canadian Solar Project K.K.）

bankable

The image of the value chain of renewable energy business at Canadian Solar Groupsolar panel
manufacturer

overGW
cumulative
shipping volume（Solar module segment）

Source: THE SOLAR FLARE Issue 2,
SPV Market Research

Source: Bloomberg New Energy Finance2020 Module Bankability Survey

Operational
solar power plants

Solar power plants
under development or
construction

537

operation of CSIF. The uniqueness of the vertically integrated model of the group is shown as below.

Bankability

16MW（panel output basis as of
Sep. 30, 2020）

GW

Canadian Solar Infrastructure Fund, Inc.

Ow

le
n and

e

● Base of sales

8
11

13

14

16

19
18

15

20

4
12

17

rt
Ve

Silicon

ic

y
a ll

-in

teg

PV plant
management
PV plantdevelopment

Wafer

Ingot
6 7
9
10

5

Provide O&M
services

ModuleCell
Same boat
equityAcquire PV
plantscts

Lease PVfacilities（As of Sep. 30, 2020）

providing high-quality solar power generation systems at low cost to customers worldwide.

● Module and System solutions（MSS）segment：18countries

ola r

roje

Sponsor Support
Agreement

Canadian Solar Group operates 22 sales hubs in North America, South America, and Asia,⓬ South Africa⓭ India⓮ China1⓯ Taiwan⓰ Korea⓱ Japan2⓲ Thailand
3⓳ Vietnam⓴ Malaysia
 Singapore Australia

ase s

yp
n e rg（panel output basis as of
Sep. 30, 2020）

Canadian Solar Group’s Global Operations❶ Canada❷ U.S.
❸ Mexico❹ Brazil❺ Argentine❻ U.K.
❼ Germany❽ Poland❾ Spain❿ Italy⓫ UAE

G row thProject owner

PV plant

e
rat

o
dm

de

l

Canadian Solar Group（incl. sponsor）

Developer

Canadian Solar Projects K.K.

$

O&M provider

Canadian Solar O&M Japan K.K.

21
22

Stable Bank Formation● Energy segment：17countries

As of December 31, 2020, CSIF has successfully achieved obtainment of debt financing from a total of 13 banks centering on Shinsei Bank,● Solar panel factory：6countries（15 factories）

Ltd., 3 megabanks, and other large financial institutions. This is because the credibility and operational stability of CSIF are healthy enoughfor banks to provide debt financing, and we believe that additional financing for future acquisitions of new assets can be obtained in stablemanner.

Canada（2009）

U.S.
（2010）

Source: Compiled by the Asset Manager based on “Investor Presentation as of Dec. 9, 2020” by Canadian Solar Inc.
（Note）
T here is no assurance that we can acquire the solar energy projects showed in the above pictures in the future as ofthis writing.

2

Global Offering
In the past two public offerings, about half of the units issued by CSIF were issued in overseas markets. By having foreign institutional
investors as unitholders, Canadian Solar Asset Management K.K., the asset manager of CSIF, operates the fund while being conscious of
global standards of infrastructure fund management. Additionally, the base of candidate investors can be broadened so that the liquidity ofunits is heightened and future public offerings are conducted stably.

3

Financial Highlights

Management Interview

Distribution Per Unit for the 7th FP

JPY

Operational Revenue for the 7th FP

3,700

JPY

Operating Income for the 7th FP

JPY

3,700

JPY

3,750

the widespread adoption

716mlnForecasted DPU
for the 9th FP

JPY

Aiming to advanceNet Income for the 7th FP

858mlnForecasted DPU
for the 8th FP

JPY

2,413mln

and use of renewable energy

Forecasted DPU
for the 10th FP

JPY

to build a moresustainable economy
and society.

3,750

Historical Distribution and Forecast
（¥）

4,000

Per unit distributions in excess of earnings

3,600

3,650

3,650

577
3,000

3,700

3,700

708

601

1,340

1,817

Canadian Solar Infrastructure Fund, Inc.
Executive Director
Canadian Solar Asset Management K.K.
CEO and Representative Director

DPU（exd. distributions in excess of earnings）

3,700

3,750

3,750

644

736

3,106

3,014

Tetsuya Nakamura

1,493

2,000
3,073
1,000

0

2,310

1,783

3rd FP

4th FP

5th FP

2,992

3,099
2,207

6th FP

7th FP

8th FP
9th FP
10th FP（Forecast） （Forecast） （Forecast）（Note）F igures for the 8th~10th Fiscal Period are forecasts and are subject to change. They do not represent
guaranteed distribution amounts.

How did the COVID-19 pandemic impact your business and financial results?
CSIF leases photovoltaic power generation

output of the power generation facilities we own. On

business assets, which it owns, to lessees andthe other hand, during the previous fiscal period,

receives rents from them. Lessees sell electricity thatdecline in electricity demand due to general economic

they generate using the feed-in tariff（FIT）scheme,

stagnation did appear to have an indirect impact, as

and CSIF receives rents based on the volume ofexemplified by an increase in the number of output

electricity sold. Therefore, CSIF's revenue is linked tocurtailments at power generation facilities in thethe actual results of the volume of electricity sold.

Kyushu area. However, during the period under review,

Moreover, actual results of CSIF show that they are

the impact was minimal, reflecting a sharp drop in

not really affected by economic trends.

number of output curtailments mainly due to the

Since January 2020, the COVID-19 pandemic hassuspension of operations for installation of anti-

had major economic consequences not only in Japan

terrorism functions and regular inspections at nuclear

but across the globe but, according to our estimates,

power plants owned and operated by Kyushu EPCO.

the pandemic has not directly impacted the electricity

45

In October 2020, Japan declared that it will become carbon neutral by 2050. What

than a fall in the TSE REIT Index, the focus ofIndex stopped rising partly due to a shift in part of thekind of government initiatives are underway for achievement of this goal?

investors on high distribution yields, and an increaseprivate investors’ funds to environment-related stocks,

Will this affect wide spread adoption and use of renewable energy in any way?

in investors’ interest after the start of full operation ofand the closing price at the end of December was

the Japanese policy aiming to achieve a decarbonized

1,138.20 points.

Following this "2050 Carbon Neutral
Declaration", participants at the 42nd meeting of
the Global Warming Prevention Headquarters

aims for renewable energy to cover 50-60 percent
of national electricity needs by 2050.
The government established a task force for the

discussed initiatives to be taken to achieve carbon

total inspections of regulations related toneutrality by 2050, and the Prime Minister

renewable energy in November 2020 to promptly

Yoshihide Suga stated to the Cabinet members

implement regulatory reforms based on its viewthat taking on the challenge of achieving carbon

that a shift in renewable energy to the main energy

neutrality by 2050 was Japan’s new growthsource and the maximum level of adoption werestrategy, which should expand the development of

crucial for achieving a carbon neutral society by

the industrial structure and the economy and2050, and it was essential to inspect allsociety to create a virtuous circle of economy andregulations that would be a barrier to this goal andthe environment. The industrial policy for creating

to expand the regulatory revision required and thesuch a virtuous circle is the "Green Growth

acceleration of this revision. Requests for theStrategy" announced in December last year.

relaxation and abolition of a number of regulations

Figures given as reference on matters such as theconcerning locations, systems, markets,energy mix required to achieve the carbon neutral

coexistence with local communities, and othergoal include that Japan expects demand forfields have been made and are now being

electricity to surge 30-50 percent by 2050 andexamined.

How do you see the market environment and trends in the investment unit price oflisted infrastructure investment funds in the second half of last year?
Japanese stocks traded in a narrow range from Julythrough October and then, from the end of Octoberreceived positively and the stock price rapidly

onwards, factors such as stronger signs of global

increased. It continued to rise steadily amid growth ineconomic recovery, the growing possibility of

the global risk appetite due to widespread

Democratic Party nominee Joe Biden winning the

expectations of agreement on the U.S. economic

United States presidential election, and the possibility

policy talks. The Nikkei average closing price onof effective vaccines against COVID-19 prompted a

December 29 reached 27,568 yen, the highest in

major turnaround. These factors encouraged

approximately 30 years and four months.

expectations for global economic recovery, and the6

COVID-19 vaccination overseas in December was

The Infrastructure Fund Market rose to 1,180.95

society. Subsequently, the TSE Infrastructure FundThe impact of output curtailments during the 7th fiscal period was limited. What
impact will they have in the future? In addition, will you take any specific measures?
In the 7th fiscal period, the impact of output

supply-demand balance, given that unseasonablecurtailments was slight. Output curtailment was

weather and severe cold are expected to persist in

conducted by Kyushu EPCO for two days, and thethe future while working from home is also expected

finally calculated assumed lost variable rent income

to become more widespread largely due to the effects

was about 95 million yen in terms of average rentof COVID-19.

income. The ratio to the expected rent income wasWith the largest panel output in our portfolio, CS

0.004%. This is believed to be because two reactors

Mashiki-machi Power Plant makes up more than 60%

were shut down for the majority of the fiscal period toof the total panel output of nine photovoltaic power

install anti-terrorism functions and another two

plants owned by CSIF in the Kyushu area. The

reactors were not fully operational mainly due torevision to online output curtailment control by Kyushu

regular inspections. During the 8th fiscal period, Unit

Electric Power Transmission and Distribution Co., Inc.

No. 4 of the Genkai Nuclear Power Plant will stop for

was completed at the end of September 2020,

approximately three months due to periodic

enabling CS Mashiki-machi Power Plant to shift from

inspections which have been underway sincefull-day control to hourly control centered around peakDecember 19, 2020. However, from the second half

hours while maintaining the upper limit of 30 days atof December 2020, there was a nationwide cold snap

the power plant to which the 30-day rule is applied.

and energy demand was far higher than usual. In

In addition, the revision of online curtailment control

seven regions, mainly in western Japan, on January 8,

was also completed at CS Minamishimabara-shi

2021, maximum power demand surpassed the levels

Power Plant（east）and CS Minamishimabara-shi

believed to be seen once in about 10 years. Moving

Power Plant（west）, which have the second largest

forward, we intend to continue monitoring the energy

panel output in Kyushu, in January 2021.

Have there been any subsequent developments with respect to the amendment of theRenewable Energy Act? How does CSIF currently recognize other important system changes?

Japanese stock market, which has a large portion ofpoints on November 9, the highest after the TSEshares sensitive to the economy, rose substantially

Infrastructure Fund Index fell to a record low of25, 2020, and the amended act will take effect onfor Decommissioning and Disposal of Renewablefrom a somewhat late start, and the Nikkei average

1,046.50 points at the end of July. This was likely aApril 1, 2022. Regarding the details of a system forPower Generation Facilities held on October 19,

surpassed 26,000 yen for the first time after

result primarily of a fall in the prices of the investment

ensuring the reserve of decommissioning costs for2020 discussed the possibility of allowing for savings

approximately 29 years in November. The start ofunits of listed Infrastructure funds, which was lesssolar power generation facilities, participants at theif the overall contract signed between a listed

The Renewable Energy Act was amended on June

8th meeting of the Working Group on Securing Costs

7

infrastructure fund and an approved power producer

due to be introduced in April 2022 will apply, thoseincluded provisions indicating financial andcategories in which the FIP price will be determinedorganizational integrity as long as the requirements forby tenders, the basic tariff（FIP price）, and thelisting the infrastructure fund are satisfied. Concerning

duration of the support payments are required tothe timing of implementation, July 1, 2022, wasrespect the view of the Calculation Committee formentioned as the earliest timing for a business to

Procurement Price, etc.

start the saving.
The joint meeting of the Subcommittee on Large-

Considering the automatic expiration system ofcertification for power plants the operation start of

Scale Integration of Renewable Energy and Next

which is delayed, it will not have a direct impact onGeneration Power Network and the Subcommittee on

CSIF because we regard it as an issue in the

Making Renewable Energy the Main Energy Source isdevelopment stage.

working on the detailed design of the FIP scheme

Participants in the System Design Specialist（new scheme）, concluding that views such as themeeting of the Electricity and Gas Market

status（power generation characteristics, scale, andSurveillance Commission resumed their discussions

domestic and overseas cost trends）and businesson power producer-side base charges at the meeting

environment（trading conditions in the wholesale

held on December 15, 2020. Industrial associations

electricity trading market and aggregator trends）ofrelated to renewable energy attended this meeting,each power source may be used as a reference when

received a report on former proposals for the power

determining the categories and other details of the

producer-side base charges, and resumed discussions

FIP scheme. The categories to which the FIP schemeon the detailed design of the charges.

What progress have you made most recently in terms of ESG initiatives?
Canadian Solar Asset Management K.K.（CSAM）,

electricity utilities, we also expect to be able toasset manager of CSIF, became a signatory of theachieve green energy consumption and cost

United Nations' Principles for Responsible Investment

reductions.

（UN PRI）in 2019 and formulated "Approach to the

As already explained in answer to Q6, CSIF issued

United Nations' Principles for Responsible

green bonds for the first time in January 2021 andInvestment" as its basic ESG policy at the end of

we acquired "Green 1," the highest grade in the

December 2020.

overall evaluation of the Green Finance Framework

We concluded agreements on specified wholesale

Evaluation, from Japan Credit Rating Agency, Ltd.

supplying with Minna-denryoku, Inc. in the case of（JCR）. While some of the assets we own（including

CS Marumori-machi Power Plant and with Zero Wattland outside the business area to which CSIF has

Power Inc. in the case of CS Izu-shi Power Plant,

land rights）have sustained damage from abnormal

enabling us to begin supplying energy fromweather thought to be caused by global climate

photovoltaic power plants we own to users who wantchange, which has occurred frequently in recent

renewable energy via these retail electricity utilities

years, we aim to operate as sustainable power plants

who use renewable energy sources in February 2021.

by using insurance and making necessary andThrough these specified wholesale agreements, we

sufficient repairs and capital expenditure after having

will also be able to sell electricity at slight premium

discussions with local communities and residents,

over the FIT price. Additionally, by purchasing energy

considering the local environment.

used at the above power plants from these retailYou seem to be using your policy of financing debt through the capital market more actively, as
indicated by your issuance of public offering investment corporation bonds in January 2021
using the registration statement submitted in the previous fiscal period, following the issuanceof private placement investment corporation bonds in 2019. What is your future policy?
In January 2021, we became the first listed（R&I）and we used these ratings when filinginfrastructure investment corporation to issue 5-year

registration statements for these bonds issues andbonds for Japanese institutional investors such as

they will enable us to continue developing moreregional financial institutions and life insurance

flexible financial strategies in the future. However,companies and issued public offering investment

given the nature of bonds, the issuance will becorporation bonds with a total issue value of 3.8

significantly affected by the market environment. We

billion yen. CSIF issued these bonds as green bonds,

will use them effectively, paying attention tohaving been assigned "Green 1," the highest grade inmaintaining a balance with bank loans when we use

the overall evaluation of the Green Financethe proceeds for the acquisition of assets and the

Framework Evaluation, from Japan Credit

refinancing of existing loans, while continuing toRating Agency, Ltd.（JCR）on May 11, 2020.

observe trends in market interests and investor

We acquired a rating of "A" from JCR and a rating

You set a policy of acquiring properties from the secondary market for some time, but
this has not yet become a reality. What is your future outlook?
As purchases and sales of photovoltaic poweroverseas that note the relatively stable businessplants in the secondary market increase, we are also

income of photovoltaic power plants in an environment

selectively considering acquisitions of properties

where long-term interest rates have long remained

developed by third parties other than the sponsor

low, as well as strong inquiries from renewable energy

which meet our investment criteria because this canbusiness operators. However, there are some

contribute not only to the growth of our portfolio but

promising proposals amongst those being consideredalso to its regional diversification.

and CSIF will continue diligently considering them

The difficulty of acquisition is increasing becausewith a view to acquisition.

of the rise in alternative investments in Japan anddemand.

of "A-" from Rating and Investment Information, Inc.

8

9

Portfolio
Portfolio Highlight

As of Dec. 31, 2020

# of Projects

23

Total Acquisition Price

PV Facilities

JPY

Panel Output of AUM

49.40

No.

123.0

bln

MW

（Note）“Total Acquisition Price” is total of the purchase prices based on the sales and purchase agreement for each project.

Total Energy Output for the Period
7th FP Actual Energy Output / 7th FP Projected Energy Output ＝Projected（MWh）16,605
14,27913,05512,00098.60％

Actual

18,0009,785

12,432
11,065

12,40011,690

9,452
9,217

8,315
7,916

6,000

0

Jul. 2020

Aug. 2020

Sep. 2020

Oct. 2020

Nov. 2020

FIT Price Range and Regional Allocation■ JPY36/kWh （31.9％）■ JPY32/kWh（8.4％）■ JPY24/kWh（3.0％）■ JPY21/kWh（5.8％）

Size
per Asset■ JPY20/kWh （36.2％）

Historical panel output of AUM（JPY billion）

120

30.4

100

80 72.7 2.6
60
40

10

3.4

3.4
10.7
3.3
30.4
2.6
72.7

20
0

3.3

10.7

IPO

■ 50MW～（2）■ 10MW～50MW（9）■ 5MW～10MW（4）■ 2MW～5MW（7）■ ～2MW（7）

Historical valuation and book value（after depreciation）

（MW）

140

Dec. 2020
As of Dec. 31, 2020

■ JPY40/kWh （14.8％）

AUM
Ratio
by FIT

Acquired Acquired Acquired Acquired Acquired Total
in 2nd FP in 3rd FP in 4th FP in 5th FP in 7th FP

Valuation price

55
50

47.09

45
40

35.96
33.86
35
30

30.44

List of Power Plant Assets

Book value

51.49
50.02
49.58 48.89

42.67 46.47
45.57 45.35
42.07

31.11

IPO 2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP

Project nameLocation

Acquisition
price
（yen
millions）

Price（yen millions）

Investment
nt ratio（％）

Panel output
（kW）

S-01

CS Shibushi-shi PP

Shibushi-shi,
Kagoshima

540

504

1.09

1,224.00

S-02

CS Isa-shi PP

Isa-shi, Kagoshima

372

334

0.75

931.77

S-03

CS Kasama-shi PP

Kasama-shi, Ibaraki

907

972

1.84

2,127.84

S-04

CS Isa-shi Dai-ni PP

Isa-shi, Kagoshima

778

695

1.58

2,013.99

S-05

CS Yusui-cho PP

Aira-gun, Kagoshima

670

599

1.36

1,749.30

S-06

CS Isa-shi Dai-san PP

Isa-shi, Kagoshima

949

859

1.92

2,225.08

S-07

CS Kasama-shi Dai-ni PP

Kasama-shi, Ibaraki

850

845

1.72

2,103.75

S-08

CS Hiji-machi PP

Hayami-gun, Oita

1,029

922

2.08

2,574.99

989

903

2.00

2,347.80

1,733

1,682

3.51

3,928.86

1,018

1,061

2.06

2,448.60

514

526

1.04

1,336.32

19,751

20,38540.65

47,692.62

246

237

0.50

636.00

746

724

1.51

1,930.50

757

775

1.53

2,124.20

Ashikitagun,Kumamoto
Shimabarashi,Nagasaki
Chichibu-gun,
SaitamaTagata-gun,Shizuoka
Kamimashiki-gun,
Kumamoto
Koriyama-shi,
Fukushima
Tsuyama-shi,
Okayama

S-09

CS Ashikita-machi PP

S-10

CS Minamishimabara-shi PP（East & West）

S-11

CS Minano-machi PP

S-12

CS Kannami-cho PP

S-13

CS Mashiki-machi PP

S-14

CS Koriyama-shi PP

S-15

CS Tsuyama-shi PP

S-16

CS Ena-shi PP

Ena-shi, Gifu

S-17

CS Daisen-cho PP （A）（B）

Saihaku-gun, Tottori

10,447

10,04621.15

27,302.40

S-18

CS Takayama-shi PP

Takayama-shi, Gifu

326

315

0.66

962.28

S-19

CS Misato-machi PP

Kodama-gun,
Saitama

470

447

0.95

1,082.88

S-20

CS Marumori-machi PP

Igu-gun, Miyagi

850

800

1.72

2,194.50

S-21

CS Izu-shi PP

Izu-shi, Shizuoka

4,569

4,383

9.25

10,776.80

S-22

CS Ishikari Shinshinotsu-mura PP

Ishikari Shinshinotsumura

680

666

1.38

2,384.64

S-23

CS Osaki-shi Kejonuma PP

Osaki-shi Kejonuma

208

205

0.42

954.9949,40548,890100.00123,054.11

Total（Note） “ Price” refers to the median project valuation report amount, which is the estimated values provided to us byPricewaterhouseCoopers Sustainability LLC （S01 – S18） and EY Strategy and Consulting Co., Ltd.（S-19 – S-23） inits project valuation reports as of December 31, 2020.

11

Portfolio Overview as of Dec. 31, 2020
S-01

CS Shibushi-shi PP

CS Yusui-cho PP

S-09

CS Ashikita-machi PP

S-13

CS Mashiki-machi PP

Panel Output

1,224.00kW

Panel Output

1,749.30kW

Panel Output

2,347.80kW

Panel Output

47,692.62kW

FIT Price

JPY 40/kWh

FIT Price

JPY 36/kWh

FIT Price

JPY 40/kWh

FIT Price

JPY 36/kWh

End of FIT Period

June 1, 2037

End of FIT Period September 16, 2034

S-02

CS Isa-shi PP

Panel Output
FIT Price

931.77kW
JPY 40/kWh

End of FIT Period June 8, 2035

S-03

CS Kasama-shi PP

End of FIT PeriodAugust 20, 2035

S-06

CS Isa-shi Dai-san PP

Panel Output

2,225.08kW

FIT Price

JPY 40/kWh

End of FIT Period September 15, 2035

S-07

CS Kasama-shi Dai-ni PP

End of FIT Period December 10, 2035

S-10

CS Minamishimabarashi PP （East & West）

Panel Output
3,928.86kW
FIT Price
JPY 40/kWh
End of FIT Period December 24, 2035（ E ）January 28, 2036（W）
S-11

CS Minano-machi PP

S-14

CS Koriyama-shi PP

Panel Output
FIT PriceEnd of FIT Period

S-15

636.00kW
JPY 32/kWh
September 15, 2036

CS Tsuyama-shi PP

S-17

CS Daisen-cho PP（A）（/ B）

Panel Output 20,885.76kW（A）、
6,416.64kW（B）
JPY 40/kWh
FIT PriceEnd of FIT Period August 9, 2037
S-18

CS Takayama-shi PP

Panel Output

CS Izu-shi PP

Panel Output
FIT PriceEnd of FIT Period

S-22

10,776.80kW
JPY 36/kWh
November 29, 2038

CS Ishikari
Shinshinotsu-mura PP

Panel Output

2,384.64kW

FIT Price

JPY 32/kWh

FIT Price

JPY 24/kWh

End of FIT Period

October 9, 2037

End of FIT Period July 15, 2039

S-19

962.28kW

S-21

CS Misato-machi PP

S-23

CS Osaki-shi
Kejonuma PP

Panel Output

2,127.84kW

Panel Output

2,103.75kW

Panel Output

2,448.60kW

Panel Output

1,930.50kW

Panel Output

1,082.88kW

Panel Output

FIT Price

JPY 40/kWh

FIT Price

JPY 40/kWh

FIT Price

JPY 32/kWh

FIT Price

JPY 32/kWh

FIT Price

JPY 32/kWh

FIT PriceEnd of FIT Period

June 25, 2035

End of FIT Period September 23, 2035

End of FIT Period

June 29, 2037

End of FIT Period

March 26, 2037

End of FIT Period July 21, 2039

S-04

12

S-05

CS Isa-shi Dai-ni PP

S-08

CS Hiji-machi PP

End of FIT Period

S-12

December 6, 2036

CS Kannami-cho PP

S-16

CS Ena-shi PP

S-20

954.99kW
JPY 21/kWh

CS Marumori-machi PP

Panel Output

2,013.99kW

Panel Output

2,574.99kW

Panel Output

1,336.32kW

Panel Output

2,124.20kW

Panel Output

2,194.50kW

FIT Price

JPY 36/kWh

FIT Price

JPY 36/kWh

FIT Price

JPY 36/kWh

FIT Price

JPY 32/kWh

FIT Price

JPY 36/kWh

End of FIY Period

June 28, 2035

End of FIT Period October 12, 2035

End of FIT Period

March 2, 2037

End of FIT Period September 12, 2037

End of FIT Period July 12, 2038

13

Sponsor Pipeline

Effort in ESG

Aim to achieve ¥100 billion in asset size as a medium-term goal by mainly acquiring
assets from the sponsor pipeline
Operational and underconstruction

On August 13, 2019, Canadian Solar Asset Management K.K（“TheUnder development

11projects,232.9MW

Total sponsor portfolio

18projects,150.6MW

29projects,383.5MW
ENR projects

2.0MW

Operational start year and status of sponsor portfolio assets
（MW）

400

Operational

Under construction

Under development

signed the United Nations Principles of Responsible Investment（UN PRI）. The
Company has been actively making ESG efforts in the Canadian Solar Groupand the operation of CSIF, and with the declaration of this signature, it will
work on the operation of CSIF, taking ESG（Environmental, Social and Governance）issues into consideration.

As a signatory to the UN PRI, CSAM devised an “Approach to UN PRI Guidelines” as of the end of December 2020 asits basic ESG policy, which can be found on CSIF’s website as of February 17, 2021.

External Certification and Recognition Related to ESG
On May 11, 2020, CSIF obtained Green 1（F）rating, the highest overall rating in the JCR Green Finance

200

evaluation, for the framework we established to limit the use of funds procured through green bonds and green loans tothose with environmental improvement effects.

100

2.0
Operational

2021

2022

Map of owned assets and sponsor assets
CS Tottori Daisen Dai-ni PP（1.9ＭＷ）

2023～

Subtotal

ENR Projects● Operational ● Under construction ● Under development ● Acquired by CSIFCS Gunma Takasaki KGPP
（24.5ＭＷ）

CS Hokkaido Bihoro PP（2.5MW）

CS Shimane Hamada PP

CS Gunma CC PP

CS Miyagi Angel Land PP

CS Hiroshima Suzuhari PP

CS Gunma Minakami PP

CS Miyagi Ogawara-machi PP（2.0ＭＷ）（17.8 MW）

（21.0ＭＷ）（20.0ＭＷ）（9.2ＭＷ）（7.5ＭＷ）

CS Yamaguchi Hofu PP

CS Gunma Minakami Dai-ni PP

CS Azuma Kofuji PP

CS Yamaguchi Aiofutajima 2 PPCS Okayama Shin-yubara PP

CS Tochigi Kitsuregawa PP（8.0ＭＷ）（1.0ＭＷ）（2.2ＭＷ）（30.0ＭＷ）（100.0ＭＷ）（1.2ＭＷ）

Major ESG-related efforts made thus far in the Canadian Solar Group and the operation of CSIF are as follows.

Environmental（Environmental Considerations）⃝The Canadian Solar Group is focused on reducing theenvironmental impact from solar panel manufacturing processes
such as greenhouse gases and industrial waste water.
⃝CS Marumori-machi Power Plant and CS Izu-shi Power Plant

Reduction of greenhouse gas
emissions（/ kW）

Reduction of industrial water
consumption（/ MW）

2016 -42.1％ 2019533.53kg
308.96kg

2016
550m3

-40.2％

2019
329m3

have concluded a Wholesale Electricity Supply Agreement with Minna-denryoku,Inc.（hereinafter “Minna-denryoku”）and Zero Watt
Power Inc.（hereinafter “Zero Watt Power”）, respectively, to supply electricity to FIT electricity users from February 2021.
⃝CSIF emphasizes environmentally conscious operation in the surrounding areas, including the use of non-chemical panel cleaning
fluid at its power generation facilities.
⃝The Company avoids excessive land development by the sponsor, achieving for the installation of power generation facilities thattake advantage of the original land form.

Social（Social Contributions）

CS Fukuoka Tagawa PP

CS Ibaraki Kurusu PP（11.3ＭＷ）⃝Canadian Solar Project K.K.（“CSP”）, the sponsor of the CSIF, constructed the Daisen Canadian Garden and donated it to the Daisen-

CS Fukuoka Saigawa PP

CS Ibaraki Kasama PP

cho Town Government in commemoration of the completion of S-17 CS Daisen-cho Power Plant as part of its contribution to local

CS Kumamoto Mashiki Dai-ni PP

CS Ibaraki Takamihara PP

CS Kumamoto Yamato PP

CS Saitama Kumagaya PP

CS Oita Hiji-machi PP

CS Gifu Kamitakara PP（20.1ＭＷ）⃝The Company is working to strengthen governance by taking measures against the conflicts of interest and adopting an operation

CS Oita Munechika PP

CS Higashikagawa Dai-ni PP⃝Operations are conducted under an appropriate check function among departments and persons in charge due to the enhancement

CS Hiroshima Fukuyama PP

CS Higashikagawa PP（0.7ＭＷ）（13.0ＭＷ）（1.2ＭＷ）（1.5ＭＷ）（53.4ＭＷ）（8.1ＭＷ）（3.4ＭＷ）

14

Company”）., the asset management company of CSIF, announced that it

CSAM’s approach on UN PRI
As of Dec. 31, 2020

ENR Projects

300

0Signatory to UN PRI（13.5ＭＷ）（1.2ＭＷ）（2.0ＭＷ）（2.1ＭＷ）（2.6ＭＷ）

communities under the concept of an ambitious attempt for harmony between nature and large-scale solar power plant. In addition, it
repaired the Hima Jinja Shrine in the same town and donated an incense holder made of white granite to the Shimpukuji Temple.
⃝CSP and the Company offered consolatory donations to the Marumori-machi Town Government. The town was severely hit by Typhoon
Hagibis in October 2019.

Governance（Corporate Governance）
system that secures the third-party nature.
of the organizational structure.
Numbers of units held by the sponsor and holding ratio: 33,895 units【14.66%】 As of Dec. 31, 202015

Financial Summary

Information for Unitholders

Financial soundness attributed to fixed interest rate conversion / LTV level isunder stable controls

Unit price performance
Unit price（JPY）

Unit price（right axis） Volume（left axis）（Units）

160,000

Fixed-to variable interest rate ratio（as at end of December 2020）

LTV（as at end of December 2020）

78.4

55.5

%

120,000
100,000%

80,000（Note）
“ Fixed-to-variable interest rate ratio” refers to the ratio of fixed interest rate liabilities to total interest-bearing liabilities atthat time. Variable interest rate liabilities that were converted to fixed interest rate liabilities through interest rate swap
agreements were deemed as fixed interest rate liabilities. “LTV” are calculated without consumption tax bridge loan.

Debt profile
CategoryType（as of Dec. 31, 2020）
Initial amount Outstanding（yen millions） （yen millions）

Interest rate

Interest Drawdown
rate typedate

13,602

13,189Base rate plus 0.45%（fixed at 0.845% upon executing interest rate swap）

Fixed

31-Oct2017

10 years from drawdown date
JCR Green Finance Evaluation

Long-term

7,210

6,998

Base rate plus 0.45%（fixed at 1.042% upon executing interest rate swap）

Fixed

6-Sep201810 years from drawdown dateLong-term

643

623

Base rate plus 0.45%

Variable

29-Mar2019

3 years from drawdown dateLong-term

4,377

4,249

Base rate plus 0.45%

Variable29-Nov2019

2 years from drawdown date

Borrowings
to be repaid
within one yearー

981

Base rate plus 0.3%

Variable

28-Sep2020

1 year from drawdown date

25,832

26,042Sub total of Loan
Bond

Longterm

1,100

Sub total of Bond
Total

1,100

1,100
30,0000.71%

6-Nov2019

Fixed

5 years from issuance date

1,100

Rating Agency
Japan Credit Rating Agency, Ltd.
Rating and Investment Information, Inc.

Subject to Rating

Rating Date

RatingOutlookLong-term Issuer Rating

July 31, 2020

A

StableThe 1st Unsecured Investment Corporation Bond
（only for Qualified Institutional Investors）

July 31, 2020

AーLong-term Issuer Rating

August 7, 2020

A-

StableHistorical balance of interest-bearing debt
（JPY million） Loan
（short-term）

Loan（long-term） Bond

2017
2018
2019
2020
2021
2022
2023
（Note） Amount after 2020 is based on the forecast as of December 31, 2020.

16

40,000
2020/
1/6

2020/
2/3

2020/
3/2

2020/
4/1

2020/
5/1

2020/
6/1

2020/
7/1

2020/
8/3

2020/
9/1

2020/
10/1

2020/
11/2

2020/
12/1

Status of unitholders■ Individuals / others
11,447（97.45%）■ Individuals / others
115,401units（49.91%）■ Financial institutions
23,438units（28.55%）(incl. financial instruments firms）# ofInvestment
units：

11,746■ Domestic corporates
51,976units（22.48%）231,190■ Financial institutions
40（0.34%）（incl. financial instruments firms）# ofUnitholders：■ Domestic corporates
192（1.63%）■ Foreign entities & individuals
67（0.57%）■ Foreign entities & individuals
40,375units（17.46%）

IR calendar

Announcement offinancial results

Fiscal period end

Payment of dividend
Asset management report

June

July

AugustSeptember

OctoberNovember

DecemberJanuary

February

March

April

May

26,932Credit rating

40,00030,00020,00010,000060,000Maturity

Long-term

Loan

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

140,000

2024

2025

2026

2027

Fiscal period end

Announcement offinancial results

Payment of dividend
Asset management report

Memorandum for unitholders
End of fiscal period

June 30 and December 31

Dividend payment record dateJune 30 and December 31（payment is to be made within 3 months after the date）

Listed financial instruments exchangeTokyo Stock Exchange（securities code: 9284）

Unitholders’ meeting

Once a every 2 years

Public announcement newspaper

Nihon Keizai Shimbun（Nikkei）

Administrator of unitholder list etc.

Sumitomo Mitsui Trust Bank, Limited[Contact information]

Izumi 2-8-4, Suginami-ku, Tokyo 168-0063
Sumitomo Mitsui Trust Bank, Limited
TEL: 0120-782-031

17

Ⅰ. Asset Management Report
1. Overview of Fund Operation(Note 4) The calculation methods are as below.
Return on Assets(1) Historical Operating Result of the Fund

Return on Capital

Ordinary Income / { (Total Assets at Beginning of FP + Total Assets at End of FP) / 2 }x 100
Net Income / { (Net Assets at Beginning of FP + Net Assets at End of FP) / 2 } x 100

3rd FP

4th FP

5th FP

6th FP

7th FP

Capital Ratio

Net Assets at End of FP / Total Assets at End of FP x 100

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

Distribution Payout Ratio

DPU excl. distribution in excess of earnings / Net Income x 100

Rental NOI

Operating Revenue (in JPY mln)

1,785

2,185

2,088

2,331

2,413

Rental Revenue for renewable energy power generation facilities – Rental Expenses
for renewable energy power generation facilities + Depreciation Expenses

FFO(Rental revenue of renewable energy power plants, out of
operating revenue) (in JPY mln)

1,785

2,185

2,088

2,331

2,413

FFO per unit

Net Income + Depreciation Expenses + Profit from sales of renewable energy power
generation facilities
FFO / The number of total issued units

Interest-bearing Liabilities Ratio

Interest-bearing Liabilities / Total Assets x 100

Operating Expense (in JPY mln)

1,140

1,368

1,391

1,490

1,555

(Expense for rental of renewable energy power plants, out of
operating expense) (in JPY mln)

1,035

1,234

1,261

1,362

1,409

Fiscal Period

Operating Income / Loss (-) (in JPY mln)

644

817

696

840

858

Ordinary Income / Loss (-) (in JPY mln)

413

711

534

692

717

Net Income / Loss (-) (in JPY mln)

412

710

534

691

716

Unitholders’ Capital (net) (Note 5) (in JPY mln)

21,902

21,482

21,34921,03920,876

Total number of units issued (unit)

231,190

231,190

231,190

231,190

231,190

Total Assets (in JPY mln)

46,77345,98150,06949,132

49,052

30.5

(1.7)

8.9

(1.9)

(0.2)

22,31522,193

21,883

21,731

21,592(vs prior FP) (%)
Total Net Assets (in JPY mln)

26.8

(0.5)

(1.4)

(0.7)

(0.6)

Interest-bearing Liabilities (in JPY mln)

(vs prior FP) (%)

24,29723,513

27,97326,931

27,142

Net Asset Value per Unit (Base price) (in JPY)

93,397

96,523

95,996

94,65693,998

Total Distribution (in JPY mln)

832

843

843

855

855

Distribution per Unit (in JPY)

3,600

3,650

3,650

3,700

3,700

(DPU excl. distribution in excess of earnings, in JPY)

1,783

3,073

2,310

2,992

3,099

(Distribution in excess of earnings per unit, in JPY)

1,817

577

1,340

708

601

Return on Assets (Note 4) (%)

1.0

1.5

1.1

1.4

1.5

(annualized ratio) (%)

2.0

3.1

2.2

2.8

2.9

Return on Capital (Note 4) (%)

2.1

3.2

2.4

3.2

3.3

(annualized ratio) (%)

4.1

6.4

4.8

6.4

6.6

Capital Ratio (Note 4) (%)

47.7

48.3

43.7

44.2

44.0

(vs prior FP) (%)
Distribution Payout Ratio (Note 4) (%)

(1.4)

0.6

(4.6)

0.5

(0.2)

100.0

100.0

100.0

100.0

100.0
184

(Note 5) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

[Other Information]
Number of Days for FP (days)

184

181

184

182

Number of Invested Asset as of End of FP

18

20

21

21

23

Depreciation Expenses (in JPY mln)

713

813

839

911

913

CAPEX (in JPY mln)
Rental NOI (Note 4) (in JPY mln)

27

54

6

10

44

1,462

1,764

1,665

1,881

1,918

FFO (Funds from Operation) (Note 4) (in JPY mln)

1,125

1,523

1,374

1,604

1,630

FFO per Unit (Note 4) (in JPY)

4,869

6,591

5,943

6,938

7,053

Interest-bearing Liabilities Ratio (Note 4) (%)

51.9

51.1

55.9

54.8

55.3

(Note 1) Fiscal periods of the fund are six months for January 1 to June 30 and July 1 to December 31 every year.
(Note 2) Consumption taxes are not included in the operating revenue etc.
(Note 3) Unless otherwise described, the numbers are rounded down and the ratio are rounded up or down.

18

19

Ⅰ. Asset Management Report(2) Overview of the Fiscal Period under Review

a. Brief History of Canadian Solar Infrastructure Fund
Canadian Solar Infrastructure Fund, Inc. (hereinafter referred to as “CSIF”) was established on May 18,
2017 with money invested of 150 million yen (1,500 units) by Canadian Solar Asset Management K.K.
(hereafter referred to as the “Asset Manager”) as the founder under the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951 including subsequent amendments; hereinafter referred to as
the “Investment Trusts Act”). Registration with the Kanto Local Finance Bureau was completed on June 9,2017 (registration number 127, filed with the Director of the Kanto Local Finance Bureau).
CSIF issued additional investment units (177,800 units) through a public offering on October 27, 2017,
listed its investment units on Tokyo Stock Exchange Inc.’s (hereinafter referred to as the “Tokyo Stock
Exchange”) Infrastructure Fund Market on October 30, 2017 (security code: 9284), and issued newinvestment units (2,890 units) through third-party allotment on November 28, 2017.
In addition, CSIF issued new investment units (46,667 units) through public offering on September 5,2018 and issued new investment units (2,333 units) through third-party allotment on October 4, 2018. As aresult, the total units issued at the end of the fiscal period under review (as of December 31, 2020) were231,190 units.
b. Investment Environment
Real GDP in July-September 2020 grew 5.3% quarter on quarter (22.9% on an annualized basis), andconsumption and export increased substantially. In the second half of the six-month period, the resurgenceof COVID-19 cases in Japan and overseas caused a fall in consumption and export. Adjustment of wages
and capital expenditure increased, recovery slowed down, and preliminary real GDP growth for the OctoberDecember quarter was 3.0% from the previous quarter (12.0% on an annualized basis).
The stock market in Japan fluctuated in a small range from July to October. The U.S. presidential election
held in November, a rise in COVID-19 cases in the U.S. and Europe, and aggravation of the global
economy and corporate performance were among the factors that prevented a rise in stock prices. From theend of October, signs of recovery in the global economy increased, the victory of U.S. Democratic
Presidential candidate Joe Biden became more probable, and the use of COVID-19 vaccines became more
realistic, which constituted a significant turning point. These factors encouraged expectations for global
economic recovery. The Japanese stock market, having a large portion of shares sensitive to the economy,rose substantially from a somewhat late start, and the Nikkei average surpassed 26,000 yen for the firsttime after approximately 29 years. The start of COVID-19 vaccination overseas in December was received
positively and the stock price rapidly increased. It continued to rise steadily amid growth in the global risk
appetite due to widespread expectations for the agreement on the U.S. economic policy talks. The Nikkei
average closing price on December 29 reached 27,568 yen, the highest in approximately 30 years and fourmonths.
Meanwhile, the Infrastructure Fund Market rose to 1,180.95 points on November 9, the highest after the
TSE Infrastructure Fund Index fell to a record low of 1,046.50 points at the end of July. This was likely aresult primarily of a fall in the prices of the investment units of listed Infrastructure funds, which was lessthan a fall in the TSE REIT Index, the focus of investors on high distribution yields, and an increase ininvestors’ interest after the start of full operation of the Japanese policy aiming to achieve a decarbonizedsociety. Subsequently, the TSE Infrastructure Fund Index stopped rising partly due to a shift in part of theprivate investors’ funds to environment-related stocks, and the closing price at the end of December was
1,138.20 points.
In light of the power demand-supply environment in Japan during the period between October andDecember 31, Mizuho Securities reports that power demand was down 0.1% on average nationwide, down
0.1% for Hokkaido Electric Power, up 2.2% for Tohoku Electric Power, down 0.9% for Tokyo Electric Power,
up 0.8% for Chubu Electric Power, up 1.3% for Hokuriku Electric Power, down 0.6% for Kansai ElectricPower, down 1.6% for Chubu Electric Power, down 2.1% for Shikoku Electric Power, up 0.7% for Kyushu
Electric Power, and down 0.6% for Okinawa Electric Power. Despite a slight recovery, the national averageof prices on the Japan Electric Power Exchange (JEPX) in the first week of December was approximately
5.9 yen/kWh, a substantial fall from approximately 8 yen in the same period of the previous year. By region,
prices in east Japan remained lower than west Japan since September. From mid-December 2020, a
decrease in temperature caused a steep rise in the market price, and the national average of the JEPX
price in the first week of January 2021 (December 29, 2020 to January 4, 2021) was 32.5 yen/kWh.
In the environment surrounding renewable energy power generation facilities (stipulated in Paragraph 3,
Article 2 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy

20

Sources by Electricity Utilities (Act No. 108 of 2011; hereinafter referred to as the “Act on Renewal Energy
Special Measures,” including subsequent amendments)(excluding facilities that fall under real estate);hereinafter referred to as “renewable energy power generation facilities” (Note 1)) held by CSIF, the output
curtailment implemented by Kyushu Electric Power Co., Inc. (hereinafter referred to as “Kyushu ElectricPower”), which requires renewable energy operators to temporarily suspend power generation throughphotovoltaic power generation facilities and wind power generation facilities (Note 2), resumed on October
13, 2019, for the first time since May 13, 2019, across the mainland of Kyushu.The output curtailment was
taken over by Kyushu Electric Power Transmission and Distribution Co., Inc. (hereinafter referred to as“Kyushu Electric Power Transmission and Distribution”), a company established on April 1, 2020, andsucceeded to a general power transmission and distribution business absorbed and split by Kyushu ElectricPower, and implemented for one day each in September and October, totaling two days during the period
under review. The primary reasons for the considerable drop in the number of days for the suspension of
power generation are because the No. 1 and No. 2 reactors at Sendai Nuclear Power Plant were shut down
on March 16 and May 20, respectively, to install anti-terrorism functions called facilities for dealing withspecific severe accidents and resumed operation on November 19 and December 24, respectively.
Operation of the No. 3 reactor at the Genkai Nuclear Power Plant was suspended for 67 days from
September 18 to November 23 due to regular inspections. Regular inspections of the No. 4 reactor at the
Genkai Nuclear Power Plant started on December 19.
On October 26, 2020, at the 203rd extraordinary session of the Diet, Prime Minister Yoshihide Suga
declared the goal of achieving overall zero emissions of greenhouse gases by 2050, that is the creation of acarbon neutral, decarbonized society. Participants at the meeting of the Global Warming Prevention
Headquarters held on October 30, 2020, discussed initiatives to be taken to achieve carbon neutrality by
2050, and the Prime Minister stated to the Cabinet members that taking on the challenge of achievingcarbon neutrality by 2050 was Japan’s new growth strategy, which should expand the development of theindustrial structure and the economy and society to create a virtuous circle of economy and theenvironment. The climate emergency declaration was adopted at the plenary session of the House ofRepresentatives held on November 19, 2020, and the plenary session of the House of Councilors held on
the following day, which stated that Japan and the rest of the world shared the recognition that global
warming had reached a state of climate crisis beyond the range of climate change and Japan wasdetermined to redesign its economy and society, dramatically improve its efforts, and implement appropriate
measures as an honored member of international society to achieve a low-carbon society as soon as
possible to overcome this crisis.
The government established a task force for the total inspections of regulations related to renewableenergy in November 2020 to promptly implement regulatory reforms based on its view that a shift inrenewable energy to the main energy source and the maximum level of adoption were crucial for achieving
a carbon neutral society by 2050, and it was essential to inspect all regulations that would be a barrier tothis goal and to expand the regulatory revision required and the acceleration of this revision.
On June 12, 2020, the Act of Partial Revision of the Electricity Business Act and Other Acts for
Establishing Resilient and Sustainable Electricity Supply Systems (hereinafter referred to as the “Act” inSection b. ), which covers amendments to acts such as the Electricity Business Act, the Act on Special
Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities,
and the Act on the Japan Oil, Gas and Metals National Corporation, Independent Administrative Agency(hereinafter the “JOGMEC Act”), was enacted. The parts of the Act concerning partial revision of the Act on
Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity
Utilities are due to go into effect on April 1, 2022.
The main points of the Partial Revision of the Electricity Business Act are to (i) require electricity
transmission/distribution businesses to jointly formulate action plans on their collaboration in disaster
responses, provide information to municipalities and other related entities in disaster response, and achieve
efforts for systematic renewal of the existing facilities; (ii) add to the services provided by the Organization
for Cross-regional Coordination of Transmission Operators (OCCTO) new services to formulate a Plan on
Development of Cross-Regional Grids; (iii) inaugurate a charging system for wheeling services in which the
METI Minister should regularly approve the upper threshold of business incomes based on the investment
plans and other documents submitted by businesses and the Minister should encourage the businesses tointroduce more efficient costs within the threshold; and (iv) take measures for defining distribution
businesses under laws including small distributed energy resources, in specific service areas.
The main points of the partial revision of the Act on Special Measures Concerning Procurement ofElectricity from Renewable Energy Sources by Electricity Utilities (REA) are (i) to change the title to the “Act21

Ⅰ. Asset Management Report

22

on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity
Utilities” (hereinafter the REA after amendment by the Act is referred to as the “2020 Revised Act on
Renewal Energy Special Measures”); (ii) to establish a Feed-in-Premium (FIP) scheme in addition to theexisting FIT scheme, a new scheme in which renewable energy generators are able to receive a certain
level of premium based on the market price; (iii) to establish a system in which part of the expenditures forfortifying electricity grids necessary for expanding the introduction of renewable energy into businesses,
e.g., regional interconnection lines is to be supported based on the surcharge system across Japan; (iv) to
impose obligations on renewable energy generators to establish an external reserve fund for the
expenditures for discarding their facilities; and (v) to introduce a system for nullifying approvals for projects
that do not commence operation within a certain period after obtaining the FIT/FIP approval to rectify asituation in which grids are not used effectively.
Finally, the main points of the partial revision of the JOGMEC Act are (i) to establish new functions ofJapan Oil, Gas and Metals National Corporation, Independent Administrative Agency (hereinafter referred toas “JOGMEC”) in which, in case of emergencies, JOGMEC will, at the request of the METI Minister basedon the provisions of the Electricity Business Act, procure fuel for electricity generation; and (ii) to enable
JOGMEC to gain additional functions, for example, equity capital in transshipment or storage terminals fornatural gases and in projects for mining and refining metallic minerals in order to secure diverse
procurement sources of LNG and stable supply of metallic minerals.
While not included in the revisions under the Act, the introduction of power producer-side base charges isbeing considered. Power producer-side base charges are imposed on a per-kW basis to ensure that thepower producers that use power grids also bear a portion of the fixed costs for transmission and distribution
facilities currently borne by retail electricity business operators on the demand side through wheelingcharges. The introduction of power producer-side base charges is currently under consideration.If power
producer-side charges are imposed on FIT renewable energy sources, power producers that sell electricity
under the FIT scheme will have no way to transfer costs to a third party during the FIT period and theircashflows will be negatively affected unless adjustment measures are introduced for projects that havealready obtained FIT approval. Regarding the specific conditions and extent of relief measures with power
producers that sell electricity under the FIT scheme in connection with the detailed design of the system, theCalculation Committee for Procurement Price convened on December 27, 2019, discussed cuts to wheelingcharges (national average of 0.5 yen per kWh) and adjustment measures through surcharges on theassumption that adjustment through the transfer of costs was possible for FIT renewable energy sources inthe same way as for other energy sources. However, arguments from both sides were presented and it was
decided that the issues should be summarized and discussed again based on the perspectives of thenational burden and the foreseeability of investment. It remains to be seen whether adjustment measuresthrough surcharges will be introduced. Subsequently, in deliberations in the Diet, Hiroshi Kajiyama, Ministerof Economy, Trade and Industry stated in an answer at a meeting of the Committee on Economy, Trade andIndustry at the House of Representatives held on May 20, 2020 “it is also true that, depending on thesystem design, renewable energy producers whose usage of transmission and distribution facilities is low
will face higher costs. Therefore, in my view, some degree of consideration and creativity is required toensure that an excessive burden is not placed on existing FIT power producers.” Then, at a meeting of theCommittee held on May 22, 2020, a supplementary resolution was passed upon approval of the Act statingthat “in consideration of power producer-side base charges, the situation of renewable energy power
producers approved under the feed-in-tariff scheme will be taken into consideration and due consideration
will also be given to ensure that renewable energy power producers are not unjustly disadvantaged
compared with other power producers. In addition, at a post-cabinet meeting news conference held on July
3, 2020, METI Minister Kajiyama stated with respect to the power-producer-side base charges currently
being considered from the viewpoint of encouraging efficient adoption of renewable energy throughpromotion of efficient use of power grids, that he has issued instructions for a review to ensure that theframework is also consistent with the review of rules surrounding the use of trunk power-transmission lines(being considered to accelerate the adoption of renewable energy while reducing existing inefficient thermal
power sources). METI held discussions in response to the instructions of Minister Kajiyama, and theargument resumed at the 53rd meeting of the System Design Working Group of the Electricity and Gas
Market Surveillance Commission held on December 15, 2020.
Under the 2020 Revised Act on Renewal Energy Special Measures, approved power producers are, in
principle, obliged to set aside funds with the Organization for Cross-regional Coordination of Transmission
Operators (OCCTO) to cover the cost of decommissioning solar power generation facilities and disposal ofwaste materials. However, the Revised Act states that the projects subject to reserve requirements will be

designated by METI and the amount to be reserved and the frequency of withholding of decommissioning
costs will be prescribed by a METI ordinance. Indeed, the details of a system for ensuring the reserve of
decommissioning costs for solar power generation facilities have been considered on seven occasions
since April 2019 at the Advisory Committee for Natural Resources and Energy, the Energy Efficiency andConservation Subcommittee, the Subcommittee on New Energy and the Working Group on Securing Costs
for Decommissioning and Disposal of Renewable Power Generation Facilities and interim findings were
published on December 10, 2019. The interim report stated that (a) the amount to be reserved for projects
approved prior to FY2019 for which the procurement price was already decided would be set at the level ofdecommissioning costs assumed upon calculation of the procurement price by the Calculation Committee
for Procurement Price, etc., (b) the amount of external reserves would be the product of multiplying astandard price (on a kWh/yen basis) equivalent to the aforementioned decommissioning costs per unit ofpower generated adjusted for facility usage and the actual amount of electricity sold under the FIT scheme,
and the funds should be reserved on a monthly basis starting 10 years before the end of the procurement
period, and (c) private reserves would only be permitted if operators prepared and published businessplans, etc., for the implementation of long-term and stable power generation projects and also met six otherrequirements, and the consideration of whether an operator was eligible to internally reserve
decommissioning costs in terms of financial and organizational integrity, etc. should consider the variety ofbusiness formats adopted, including listed infrastructure funds. There was an argument at the eighth
meeting of the Working Group on Securing Costs for Decommissioning and Disposal of Renewable Power
Generation Facilities held on October 19, 2020, that internal savings could be permitted if the overall contact
signed between a listed infrastructure fund and an approved power producer included provisions indicating
financial and organizational integrity, such as a fund flow demonstrating the same electricity sale income
used as the capital for both parties’ businesses, limitation on the termination of contracts from lessees, andrestrictions on other purposes for use of power generation facilities and land where the facilities are locatedas long as the requirements for listing the infrastructure fund are satisfied.
The 2020 Act on Renewal Energy Special Measures also includes a new section titled “Supply ofRenewable Energy through Market Transactions.” While a Feed-In-Premium (“FIP”) system will be put inplace under this section, under the 2020 Act on Renewal Energy Special Measures, the only projects thatwill be eligible for the existing FIT scheme will be renewable energy generators that meet the regional use
requirements. The FIP scheme will allow renewable energy generators to sell their electricity through awholesale power exchange or over-the-counter transactions while receiving an additional premium (defined
as a “Subsidy for Supply Promotion” in the 2020 Act on Renewal Energy Special Measures), that is thedifference between the basic tariff (FIP price) (fixed) and a tariff based on market prices (reference tariff)(fixed for a given period, sliding in the long term). The category to which the FIP scheme will apply is called
the “subsidy category” and will be designated by the Minister of Economy, Trade and Industry, respecting
the opinion of the Procurement Price Calculation Committee. However, the Interim Report by the
Subcommittee on System Reform for Renewable Energy as Main Power Source (hereinafter referred to as
the “Subcommittee for Renewable Energy as Main Power Source”) under the Strategic Policy Committee ofthe Advisory Committee for Natural Resources and Energy published in February 2020 described thesubsidy category subject to the FIP scheme as “energy sources that are expected to grow into competitiveenergy sources (competitive energy sources)” and “energy sources whose generation costs can be steadily
reduced and energy sources that can be used as cheap energy sources” and specifies mega-solar projects
and wind projects. Moreover, the discussions and interim report of the subcommittee suggest thatconsideration is being given to making the reference price fixed for a given period but variable in the longterm to simultaneously ensure investment incentive and energy generation behavior conscious of market
prices. However, the photovoltaic power generation facilities owned by CSIF have already started sellingelectricity under the FIT scheme and, judging from discussions in the Subcommittee for Renewable Energy
as Main Power Source and answers in Diet deliberations, these facilities are likely to remain eligible under
the current FIT scheme and there is unlikely to be any transition to the FIP system. Therefore, even if
eligibility for the FIT scheme is limited as described above, the feed-in-tariff prices of the photovoltaic power
generation facilities owned by CSIF and currently in operation are unlikely to be affected.
Finally, under the 2020 Act on Renewal Energy Special Measures, a new system for nullifying FIT/FIP
approval of the Minister of Economy, Trade and Industry for a project that has not started operation within acertain period of time after approval (hereinafter referred to as “expiration of certification”) will be introduced
from the viewpoint of freeing up grid capacity reserved for projects that have not started operation for years.
The period of time for FIP/FIT approvals to be nullified is not specified in the 2020 Act on Renewal Energy
Special Measures and will be prescribed in a METI ordinance. However, the photovoltaic power generation

23

Ⅰ. Asset Management Reportfacilities owned by CSIF have already started selling electricity under the FIT scheme and even when the2020 Act on Renewal Energy Special Measures goes into effect and expiration of certification is introduced,
certification of the photovoltaic power generation facilities owned by CSIF will not be nullified as a result.
(Note 1) “Renewable energy generation facilities, etc.” refers collectively to renewable energy generation facilities, andreal estate, real estate leases (includes subleases) and land lease rights (hereinafter referred to as the “site,etc.”) necessary to install maintain and operate renewable energy generation facilities. The same shall apply
hereunder.
(Note 2) “Photovoltaic power generation facilities” refers, among renewable energy power generation facilities, to thosethat generate electricity using sunlight as an energy source, and "wind power generation facilities" refers to thosethat generate power using wind power, among other renewable energy power generation facilities. “Photovoltaic
power generation facilities, etc.” refers collectively to photovoltaic power generation facilities, and real estate, realestate leases (includes subleases) or land lease rights necessary to install maintain and operate photovoltaic
power generation facilities. The same shall apply hereunder.

c. Management Performance
During the previous fiscal period, CSIF did not acquire new photovoltaic power generation or otherfacilities. As a result, it held a portfolio consisting of 21 facilities with a total panel output (Note 3) of 119.7
MW, a total acquisition price (Note 4) of ¥48,850 million, and a total price (Note 5) of ¥49,580 million as ofthe end of the previous fiscal period. During the fiscal period under review, CSIF acquired two facilities (total
panel output of 3.3 MW and total acquisition price of ¥880 million) on September 28, 2020, by usingborrowings and cash on hand. As a result, it held a portfolio consisting of 23 facilities with a total panel
output of 123.05 MW, a total acquisition price of ¥49,405 million (Note 5), and a total price (Note 6) of¥48,890 million as of the end of the fiscal period under review and continued to be a large operator among
listed infrastructure funds.
(Note 3) “Panel output” shall mean output calculated by multiplying rated output per solar cell module (meaning the maximum
output stated in specifications of solar cell module) used in each solar energy facility by the total number of panels.
The same shall apply hereunder.

( Note 4) “Acquisition price” shall mean the sale and purchase price (excluding outsourcing service fees and otheracquisition expenses related to the acquisition of assets, property-related taxes, urban planning taxes,
consumption taxes and other fees and charges) described in the sale and purchase agreement pertaining to each
asset acquired. It shall be rounded down to the nearest one million yen. The same shall apply hereunder.
(Note 5) The acquisition price of CS Mishiki Power Plant had reduced in the amount of 332 million yen on December 16, 2020,
back from the signing date of the Property Purchase Agreement(Note 6) “Price” shall mean the total intermediate value calculated by CSIF pursuant to paragraph 1, Article 41 of its Articles ofIncorporation, using the appraised value as of June 30, 2020, and December 31, 2020, in the range stated in thevaluation report obtained from PricewaterhouseCoopers Sustainability LLC. for the renewable energy power
generation facilities at power plants from S-01 through S-18. The appraised value of renewable energy power
generation facilities at power plants from S-19 through S-23 is the total appraised value as of June 30, 2020, andDecember 31, 2020, stated as the median in the valuation report obtained from Ernst & Young Transaction Advisory
Services Co., Ltd. or EY Strategy and Consulting Co., Ltd. Ernst & Young Transaction Advisory Services Co., Ltd.
was merged with EY Advisory & Consulting Co., Ltd. and established as EY Strategy and Consulting Co., Ltd. on
October 1, 2020.

d. Overview of Financing
CSIF borrowed ¥1,000 million on September 28, 2020, during the period under review. It also made acontractual repayment of ¥789 million at the end of the period, and the amount of borrowings as of the endof the period under review came to ¥26,042 million. Consequently, the ratio of interest-bearing debt to total
assets (ratio of interest-bearing debt to total assets at the end of fiscal period) was 55.3%.
CSIF received a credit rating and re-rating of its first unsecured Investment Corporation bonds from thefollowing rating agency on July 31, 2020.
Rating Agency
JCR

24

Rating Subject

RatingOutlookLong-term Issuer Rating

A

StableThe 1st Unsecured Investment Corporation Bond
(Specified investment corporation bonds with limited inter-bond paripassu clause and for qualified institutional investors only)A-

CSIF received a credit rating also from the following rating agency on August 7, 2020.
Rating Agency

Rating Subject

RatingOutlookRating and Investment
Information, Inc. (R&I)

Long-term Issuer Rating

A-

Stablee. Overview of Business Performance and Distributions
As a result of the management described above, the business results in the fiscal period under review
included operating revenue of ¥2,413 million, operating income of ¥858 million, ordinary income of ¥717
million, and net income of ¥716 million mainly due to the impact of unseasonable weather and the revisionof the purchase price of CS Mashiki-machi Power Plant disclosed by CSIF on December 16, 2020.
Pursuant to the cash distribution policy set forth in Article 47, Paragraph 1 of its Articles of Incorporation,
CSIF shall distribute an amount in excess of the amount equivalent to 90% of its distributable earnings as
defined in Article 67-15 of the Act on Special Measures Concerning Taxation.
In addition, distributions in excess of earnings are calculated on the premise that such distributions will
generally be made in accordance with the cash distribution policy prescribed in CSIF’s Articles ofIncorporation and the Asset Manager’s asset management guidelines formulated as part of its internal
regulations.
CSIF intends to make cash distributions to its unitholders for each fiscal period from free cash flow
(hereinafter referred to as “FCF”) generated by its renewable energy power generation facilities, in amounts
determined in the following manner. The amount available for distribution shall be calculated by multiplying
FCF, that is net cash flow (hereinafter referred to as “NCF”; CSIF shall incorporate the total amount of NCF
remaining after deducting distributions for the preceding fiscal periods in calculating NCF) to be vested toequity investors after deducting FCF payable to debt investors, by a certain ratio (hereinafter referred to as“payout ratio”; the payout ratio for the 7th fiscal period is 89.0%) determined by CSIF in light of the amountof NCF for each fiscal period.
At the same time, CSIF intends to maintain a stable level of distributions for the time being. In
determining the payout ratio described above, CSIF will consider the forecast NCF for each fiscal period torealize that level of distributions.
In addition to a cash distribution within the range of profit, CSIF intends to make distributions in excess ofearnings for each fiscal period on a continuous basis in order to realize this policy.
In developing its performance forecast (including any revisions thereof) for each fiscal period, in the casewhere NCF calculated from actual energy output in a fiscal period (hereinafter referred to as “actual NCF”;
CSIF shall incorporate the total amount of NCF remaining after deducting distributions for the preceding
fiscal periods in calculating actual NCF) exceeds NCF projected for the fiscal period (hereinafter referred toas “projected NCF”; CSIF shall incorporate the total amount of NCF remaining after deducting distributions
for the preceding fiscal periods in calculating projected NCF) on the basis of an energy output value
projected by professional specialists (P50) which forms the foundation for the calculation of rents withregard to the renewable energy power generation facilities, CSIF intends to limit the cash distribution to theamount of projected NCF multiplied by the payout ratio for said fiscal period.
On the other hand, in the case where actual NCF is equal to or below projected NCF, CSIF intends tomake a cash distribution for the fiscal period at the amount of actual NCF multiplied by the payout ratio.
Based on the above policy, CSIF decided to make a distribution for the fiscal period under review of¥855,403,000, equivalent to 89.0% of projected NCF for the period (¥960,272,000), of which distribution inexcess of earnings is ¥138,945,190 after deducting dividends for the period of ¥716,457,810. Dividend perinvestment unit is ¥3,700 for the fiscal period under review.

25

Ⅰ. Asset Management Report(3) Summary of Public Offering etc.

Date

Event

(4) Historical Distributions
Total number of investment
units issued and outstanding(units)Total amount of unitholders'
capital(Note 1) (million yen)

ChangeBalance

ChangeBalance

Remarksl Period

May 18, 2017

Establishment upon
private placement

1,500

1,500

150

150

(Note 2)October 27, 2017

Capital increase by
public offering

177,800

179,300

16,891

17,041(Note 3)

November 28, 2017

Capital increase by
third-party allotment

2,890

182,190274

17,315(Note 4)

Capital increase by
public offering

46,667

September 5, 2018

228,857

4,509

21,824(Note 5)

Unappropriated Earnings or Undisposed
Losses (in JPY thousand)
Retained Earnings (in JPY thousand)Total Distribution (in JPY thousand)4th FP

5th FP

6th FP

7th FP

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

412,298

710,506

534,065

691,823

716,565

86

59

16

103

108

832,284

843,843

843,843855,403855,403（3,700）(3,600)(3,650)(3,650)(3,700)412,211

710,446

534,048

691,720

716,457(Distribution for Profit per Unit, in JPY)

(1,783)(3,073)(2,310)(2,992)（3,099）(Note 7)

Distribution in Excess of Earnings (in JPY
thousand)

420,072

133,396309,794

163,682

138,945(Note 8)(Distribution in Excess of Earnings per
Unit, in JPY)

(1,817)(577)(1,340)

(708)

（601）

Distribution from Allowance for Adjustment
for Temporary Difference out of Distribution
in Excess of Earnings (in JPY thousand)

-

-

-

-

-

(Distribution from Allowance for Adjustment for
Temporary Difference per Unit out of Distribution
in Excess of Earnings per Unit, in JPY)

(-)

(-)

(-)

(-)

(-)

Distribution as Redemption of Capital basedon Tax Law (in JPY thousand)

420,072

133,396309,794

163,682

138,945(Distribution as Redemption of Capital
based on Tax Law, in JPY)

(1,817)(577)(1,340)

(708)

（601）

-

228,857(147)

21,677(Note 6)

October 4, 2018

Capital increase by
third-party allotment

2,333

231,190

225

21,902

March 14, 2019

Cash distribution inexcess of earnings(refund of investment)-

231,190(420)

21,482September 17, 2019

Cash distribution inexcess of earnings(refund of investment)-

231,190(133)

21,349(Note 9)March 17, 2020

Cash distribution inexcess of earnings(refund of investment)-

231,190(309)

21,039(Note 10)

Cash distribution in
September 15, 2020 excess of earnings(refund of investment)-

231,190(163)

20,876(Note 11)

(DPU, in JPY)

3rd FP
Fr. Jul. 1, 2018
To Dec. 31, 2018

Distribution for Profit (in JPY thousand)Cash distribution in
September 14, 2018 excess of earnings(refund of investment)(Note 1) The amount of deduction of total amount of unitholders’ capital is deducted.
(Note 2) In the establishment of the CSIF, the investment units were issued at an issue price of ¥100,000 per unit. The party who applied
for subscription of investment units upon the establishment is Canadian Solar Projects K.K.
(Note 3) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at anissue price of ¥100,000 (issue value of ¥95,000) per unit.
(Note 4) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue value of ¥95,000 per unit forthe purpose of appropriation to a part of the funds for acquisition of specified assets or part of repayment of borrowings.
(Note 5) New investment units were issued by public offering for the purpose of raising funds for the acquisition of specified assets at anissue price of ¥102,180 (issue value of ¥96,625) per unit.
(Note 6) CSIF decided, at a meeting of its Board of Directors held on August 14, 2018, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥808 per unit for the second fiscal period (ended June 30, 2018), and began to pay it from
September 14, 2018.
(Note 7) New investment units were issued to Mizuho Securities Co., Ltd. by third-party allotment at an issue price of ¥96,625 per unit forthe purpose of appropriation to a part of the funds for acquisition of specified assets or a part of the funds for repayment ofborrowings.
(Note 8) CSIF decided, at a meeting of its Board of Directors held on February 15, 2019, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥1,817 per unit for the third fiscal period (ended December 31, 2018), and began to pay itfrom March 14, 2019.
(Note 9) CSIF decided, at a meeting of its Board of Directors held on August 13, 2019, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥577 per unit for the forth fiscal period (ended June 30, 2019), and began to pay it from
September 17, 2019.
(Note 10) CSIF decided, at a meeting of its Board of Directors held on February 13, 2020, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥1,340 per unit for the fifth fiscal period (ended December 31, 2019), and began to pay itfrom March 17, 2020.
(Note 11) CSIF decided, at a meeting of its Board of Directors held on August 14, 2020, to pay a cash distribution in excess of earnings(refund of investment) in an amount of ¥708 per unit for the sixth fiscal period (ended June 30, 2020), and began to pay it from
September 15, 2020.

26

Based on the unappropriated earnings of JPY 716mln for the 7th FP, after a rounding down for theamount below JPY 1 million, JPY 716 million is the distribution for profit. Together with JPY 138 million of
distribution in excess of earnings, as the result, JPY 3,700 is the DPU for the period.

(Note) The fund makes distribution in excess of earnings every FP based on its article 47.2. Based on this policy, JPY 138mln which is
15.2% of the depreciation expenses, JPY 914mln, is to be distributed as the distribution in excess of earnings. As a result, JPY
3,700 is DPU for the 7th FP.

(5) Operational Policy and Agendas in the Futurea. Outlook for the Future Management
The Japanese economy was overwhelmingly affected by the COVID-19 pandemic in 2020. The growthrate in fiscal 2020 is forecasted to be -5.5% year on year, which may reflect an adverse impact ofapproximately ¥30 trillion yen in terms of monetary value. In late December 2020, the working group of the
Ministry of Health, Labour and Welfare (MHLW) instructed local governments to prepare for vaccinating
health care providers in direct contact with COVID-19 patients in late February at the earliest and older
people aged 65 and above comprising approximately 70% of those subject to priority vaccination in lateMarch at the earliest. However, COVID-19 vaccination poses a number of challenges, includingtransportation at an extremely low temperature and scheduling a large number of vaccinations in a shortperiod of time. Therefore, effective vaccines are expected to become widely available in Japan andoverseas in the latter half of 2021 or early 2022 and restrictions such as social distancing are likely to belifted in the first half of 2022. With this outlook, real GDP is projected to grow approximately 3.4% year on
year in 2021, assuming that COVID-19 measures will continue around the world. Economic recovery is
expected to be slow despite a stimulus through public investment in national resilience as part of thegovernment’s economic measures, which will likely be insufficient to offset a fall in the previous year. The
composition of household expenditures is predicted to change dramatically due to restricted outings during
the COVID-19 crisis. Some changes due to an increase in people working from home and online
consumption will presumably continue after the pandemic subsides.

27

Ⅰ. Asset Management Report
Residents in 11 prefectures, including Fukui Prefecture, filed a lawsuit against the government, claimingthat the decision of the Nuclear Regulation Authority that the earthquake resistance of Units No. 3 and No. 4
at the Oi Nuclear Power Plant (Oi, Fukui Prefecture) of Kansai Electric Power Company conformed to the
new standards was wrong. The Osaka District Court ruled that the approval was illegal and rescinded thepermission. The Osaka District Court stated that the decision of the Nuclear Regulation Authority was aninexcusable mistake that resulted from the omission of necessary examination based on the assumption ofearthquake-level disasters. Meanwhile, the government was dissatisfied with this ruling of the Osaka District
Court and appealed to the Osaka High Court on December 17. Attention must be paid to trends inprovisional dispositions and litigation related to the prohibition of nuclear power plant operation, including an
opposition hearing at the Hiroshima High Court seeking rescindment of a provisional disposition to suspend
the operation of the Ikata Nuclear Power Plant of Shikoku Electric Power Company and a lawsuit at the
Osaka District Court seeking the suspension of operation of all nuclear power plants in operation of Kansai
Electric Power Company.
With respect to the environment surrounding photovoltaic power generation facilities that are included inrenewable energy power generation facilities, as stated in “(I. Overview of the Fiscal Period under Review)b. Investment Environment” above, the output curtailment that requires renewable energy power generation
operators to temporarily suspend power generation through photovoltaic power generation facilities, etc.
was resumed in areas under the jurisdiction of Kyushu Electric Power from October 2019. However, if
renewable energy adoption continues to expand in the future, output curtailment may also be implemented
in other regions besides the Kyushu region such as the Tohoku region and the Chugoku region.
Meanwhile, installation of anti-terrorism facilities known as facilities for dealing with specific severe
accidents in Units No. 1 and No. 2 of the Sendai Nuclear Power Plant of Kyushu Electric Power Company
was completed and power generation resumed on November 19, 2020, and December 24, 2020,
respectively. The periodic inspections of Unit No.3 of the Genkai Nuclear Power Plant were completed andoperation resumed on November 23, 2020. Periodic inspections of Unit No. 4 of the Genkai Nuclear Power
Plant started on December 19, 2020, and the reactor will stop for approximately three months.Because
Prime Minister Yoshihide Suga declared the goal of achieving carbon neutrality (a decarbonized society) by
2050 (2050 Carbon Neutral Goal) at the 203rd extraordinary session of the Diet held on October 26, 2020,
activities associated with this goal have been progressed. The Prime Minister stressed that the key wasinnovation, including next-generation solar cells and carbon recycling and that the government would
increasingly encourage for R&D in view of practical use. He also emphasized the government’s plans tosave energy, maximize the introduction of renewable energy, and implement nuclear power policies
prioritizing safety to establish a stable energy supply and to dramatically change its policy of coal power
generation that Japan had continued for many years. In addition, the Prime Minister instructed all Cabinet
members to work together to achieve the 2050 Carbon Neutral goal and the central and local governments
to hold growth strategy meetings and discussions at new places shared between them in an effort toaccelerate the improvement of long-term strategies based on anti-global warming plans, basic energy plans,
and the Paris Agreement. Japan’s medium-term goal for greenhouse gas emissions is a 26% reduction ofgreenhouse gas emissions (the amount in 2013) by 2030 and its long-term goal is a 80% reduction (noreference year) by 2050.
The government held its sixth growth strategy meeting on December 25, 2020, and announced theGreen Growth Strategy associated with the 2050 Carbon Neutral goal. According to the strategy, thereference values for the energy mix for achieving the carbon neutral goal included an increase of 30% to
50% in demand for electric power, the component ratio of renewable energy, of which introduction will be
maximized, of approximately 50% to 60%, that of thermal power from hydrogen and ammonia ofapproximately 10%, and thermal power generation on the assumption of collecting nuclear power and CO2of 30% to 40%. The strategy related to off-shore wind power generation is characterized by the clear
commitment of the government to its introduction targets (10 GW in 2030 and 30 GW to 45 GW in 2040)
and the mention of the revision of system operation rules to allow the priority of connecting renewableenergy and the start of specific consideration of developing systems, such as direct current powertransmission.

28

Kono, Minister for Administrative Reform and Regulatory Reform, convened a taskforce to conduct thefirst and second inspections of regulations on renewable energy on December 1 and December 25, 2020.
This taskforce requested the relaxation and abolition of a number of regulations concerning locations,systems, markets, coexistence with local communities, and other fields. The government plans to inspect all
regulations that become a barrier in making renewable energy the main power source and maximizing its
introduction, which comprise improvements in achieving a carbon neutral society by 2050, make thenecessary regulatory revisions, and accelerate these revisions.
As described in “b. Investment Environment” under “I. Overview of the Fiscal Period under Review”
above, the discussion on the power producer-side base charges resumed at the System Design Specialist
meeting of the Electricity and Gas Market Surveillance Commission held on December 15, 2020. Industrial
associations related to renewable energy attended this meeting, received a report on former proposals forthe power producer-side base charges, and started discussing the detailed design of the charges.
As described in “b. Investment Environment” under “I. Overview of the Fiscal Period under Review”
above, there was an argument on the system to secure reserves for the expenses for the disposal ofphotovoltaic power generation facilities at the eighth meeting of the Working Group on Securing Costs for
Decommissioning and Disposal of Renewable Power Generation Facilities held on October 19, 2020, thatinternal saving could be permitted if the overall contact signed between a listed infrastructure investment
corporation and an approved power producer included provisions indicating financial and organizational
integrity, such as a fund flow demonstrating the same electricity sale income used as capital for bothparties’ businesses, limitation on the termination of contracts from lessees, and restrictions on otherpurposes of use of power generation facilities and land where the facilities were located as long as therequirements for listing the infrastructure fund are satisfied. Concerning the timing of implementation, July
1, 2022, was mentioned as the earliest timing for a business to start the saving.
As stated in “b. Investment Environment” under “I. Overview of the Fiscal Period under Review” above,
the Act of Partial Revision of the Electricity Business Act and Other Acts for Establishing Resilient andSustainable Electricity Supply Systems (“Energy Supply Resilience Act”), which includes the revision of the
Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources byElectricity Utilities (“Act on Renewal Energy Special Measures”), taking into account the dramatic reform of
the FIT scheme, was established in June 2020, and the new FIP scheme would be established in April 2022
in addition to the FIT scheme. The joint meeting of the Subcommittee on Large-Scale Integration of
Renewable Energy and Next Generation Power Network and the Subcommittee on Making Renewable
Energy the Main Energy Source is currently discussing the detailed design of the FIP scheme andconcluding that views such as the status (power generation characteristics, scale, and domestic andoverseas cost trends) and business environment (trading conditions in the wholesale electricity trading
market and aggregator trends) of each power source may be used as a reference when determining thecategories and other details of the FIT scheme. The 2020 Revised Act on Renewal Energy Special
Measures that will take effect in April 2022 states that the opinions of the Procurement Price Calculation
Committee on the subsidy categories (categories to which the FIP scheme will apply), subsidy categories
subject to bidding, basic tariffs (FIP prices), and subsidy periods (assistance periods) in the FIP scheme
scheduled to start in April 2022 shall be heard and respected.

b. Future Management Policy(i) External Growth Strategy
The Canadian Solar Group (Note 2), which is the Sponsor Group (Note 1) of CSIF, adopts the vertical
integration model that has developed mainly in the photovoltaic power generation market in Europe andAmerica and applies this model in the global market, including Japan. CSIF considers that mutual
cooperation between the Group and CSIF (engaging in investment in and management of photovoltaic
power generation facilities) through the Sponsor Group based on the vertical integration model for theconstruction of the value chain with the aim of creating mutual value should lead to the enhancement ofvalue for unitholders.
Specifically, CSIF intends to increase assets by utilizing the preferential trading negotiation right grantedby the Sponsor Group and acquiring photovoltaic power generation facilities, etc. whose value is high from29

Ⅰ. Asset Management Report
the pipelines of the Sponsor. In addition, CSIF will aim to acquire photovoltaic power generation facilities,
etc. held by persons other than the Sponsor Group by utilizing the Sponsor Group’s networks of brokers andpower producers.
(Note 1) The “Sponsor Group” collectively refer to (i) the Sponsor (Canadian Solar Projects K.K.), (ii) special purpose companies (theymay be hereinafter referred to as “SPCs”), partnerships or other funds with which the Sponsor has entered into the asset
management service agreement, (iii) Canadian Solar O&M Japan K.K. (it may be hereinafter referred to as “CSOM Japan”)
and (iv) special purpose companies, partnerships or other funds in which the Sponsor or its subsidiary own a majority
interest. The same will apply below.
(Note 2) The “Canadian Solar Group” refers to the consolidated corporate group with Canadian Solar Inc. (headquartered in Canada)
at the top to which the Sponsor (Canadian Solar Projects K.K.) belongs.

(ii) Internal Growth Strategy
CSIF will contract out O&M (Note) to CSOM Japan, which is a wholly owned subsidiary of the Sponsor
and provides O&M services in Japan, in principle, for the availability of homogeneous O&M services to theextent that CSIF considers essential. CSIF aims to thereby reduce the operational risk and operating costs
by utilizing the services of CSOM Japan and placing a blanket order, respectively.
By making the most of the strong operation and management abilities realized by utilizing the global
monitoring platform of the Sponsor Group in the early discovery and repair of failures of power generation
facilities, CSIF will aim to reduce the loss of power generation. In addition, CSIF will implement theappropriate repair and facilities replacement of assets under management to maintain and enhance thevalue of assets from the medium- to long-term perspective, thereby securing stable revenue in the medium
to long term.
In response to the output curtailment implemented by Kyushu Electric Power described in “b. Investment
Environment” under “I. Overview of the Fiscal Period under Review” above, CSIF performed construction for
online output curtailment (output curtailment of photovoltaic power generation facilities with a remote output
controller installed; the same will apply below) of CS Mashiki-machi Power Plant, the largest asset in its
portfolio. While CS Mashiki-machi Power Plant is subject to the 30-day rule for output curtailment, the above
construction in September 2020 required for online output curtailment allows a shift from the previous allday curtailment to hourly curtailment and reduction of a decrease in lease revenue caused by output
curtailment. In addition, curtailment within a day is counted as one day regardless of the duration, whichallows the power plant to respond to output curtailment during peak demand for electricity while complying
with the 30-day rule. CS Minami Shimabara-shi Power Plant (East) and CS Minami Shimabara-shi Power
Plant (West) also plan to shift to the same online method of output curtailment at the end of January 2021.
As part of its activities related to the Principles for Responsible Investment (UN PRI), the Asset Manager
signed the UN PRI on August 13, 2019, and established the Approach to the Principles for Responsible
Investment at the end of December 2020 as the basic ESG policy of the Asset Manager. CSIF obtained thefollowing evaluation from the Japan Credit Rating Agency, Ltd. (JCR) regarding the green financeframework in order to apply for external certification and assessment for its ESG..
Date of Evaluation
May 11, 2020

Evaluating Agency
JCR

Evaluation
OverallGreen 1 (F)Greenness (use of proceeds)g 1 (F)
m 1 (F)Management, Operation and Transparency(6) Subsequent Event
Issuance of Investment Corporation Bonds (Green Bonds)
CSIF issued investment corporation bonds (“Green Bonds”) based on the shelf registration for its
issuance of investment corporation bonds filed to Kanto Local Finance Bureau as of June 26, 2020.
① NameCanadian Solar Infrastructure Investment Corporation
The 1st Unsecured Bond (Green Bonds)② Total issue amount
3,800 million yen③ Form of the bond certificate
Subject to the provisions of the Act on Book-Entry Transfer ofCompany Bonds, Shares, etc. bond certificates will not be issued.
④ Issue price
100 yen per par value of 100 yen for each bond
⑤ Redemption price⑥ Interest rate
⑦ Denomination of each bond

100 yen per par value of 100 yen for each bond
0.80% per annum
100 million yen⑧ Offering method

Public offering⑨ Offering period⑩ Payment date
⑪ Collateral / Guarantee⑭ Credit rating⑮ Special financial covenant

January 20, 2021
January 26, 2021
No collateral or guarantee is provided for the Green Bonds.
None of CSIF’s assets are secured for the Green Bonds.
The total amount of the Green Bonds will be redeemed on January
26, 2026 (5-year bond) Early redemption is possible any time after
the payment date,except for the case separately determined by
the depositary.
January 26 and July 26 of every year (When an interest
paymentdate falls on a bank holiday it will be moved to thepreceding business day. Initial interest payment date will be July26, 2021)
A (Japan Credit Rating Agency, Ltd.)Collateral provision restriction clause is added.

⑯ Depositary⑰ Fiscal agent, issuing agent

Japan Securities Depositary Center, Inc.
Mizuho Bank, Ltd.

⑫ Redemption method anddate⑬ Interest payment dateand payment agent⑱ Underwriter for private
placement

Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc.

(Note) “O&M” is an abbreviation of Operation & Maintenance. The same will apply below.

(iii) Financial Strategy
To secure stable revenue and ensure the growth of the managed assets of CSIF, CSIF will consider
financing by public offering, borrowings and other means in the acquisition of new assets, while watchingchanges in the financing environment closely.

30

31

Ⅰ. Asset Management Report(4) Asset Manager, Asset Custodian and Administrator

2. Overview of Fund Corporation

Asset manager, asset custodian and administrator as of December 31, 2020 are as follows.

(1) Summary of Invested Capital

3rd FP

Fiscal Period

4th FP

5th FP

6th FP

7th FP

Dec. 31, 2018 Jun. 30, 2019 Dec. 31, 2019 Jun. 30, 2020 Dec. 31, 2020

The Number of Units Allowed for Issuance

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000

Total Number of Units Issued

231,190

231,190

231,190

231,190

231,190

Unitholders’ Capital (net) (Note) (in JPY mln)

21,902

21,482

21,34921,03920,876The Number of Unitholders

9,815

11,143

11,40012,005

11,746(Note) Deductible amount for unitholders’ capital is deducted from the gross amount of unitholders’ capital.

Major unitholders as of December 31, 2020 are as follows.
The Number of Units Held
33,895

14.66

8,292

3.58

6,105

2.64

4,654

2.01

THE BANK OF NEW YORK MELLON

4,379

1.89

The Bank of Fukuoka, Ltd.

3,510

1.51

JP MORGAN CHASE BANK

3,497

1.51

Individual

3,300

1.42

THE FUKUHO BANK, LTD.
CITIBANK INTERNATIONAL PLC AS TRUSTEE FOR
STANDARD LIFE WEALTH PHOENIX FUND
Total

2,440

1.05

2,437

1.05

72,50931.36(Note) The ratio is rounded down to two decimal places.

(3) Summary of Executives

a.Executive Director, Supervisory Director and Accounting Auditor

Executive Director

Supervisory
Director

Tetsuya Nakamura

Takashi Handa

Eriko Ishii
Accounting
AuditorGrant Thornton Taiyo
LLC

Concurrent Post
Representative director of Canadian Solar AssetManagement K.K.
Mazars Carl (Partner)
Mazars FAS K.K. (Representative Director)
Zuken Inc. (Audit and Supervisory board member)
KACHIKAIHATSU CO.LTD. (Outside Director)
Shin Saiwai Law Office (Partner, Attorney at law)
Itochu REIT Management Co., Ltd. (Member ofthe compliance committee)-

Compensation(in JPY thousand)
-

2,400

11,100(Note) The executive directors and the supervisory director don’t hold the fund’s unit. Although the supervisory directors may be in aposition of executive officer of any corporations other than stated above, there is no conflict of interest related to the fund.

b.The policy on decision of removal / not-to-reappoint of accounting auditor
Decision of removal is made based on Investment Trust Law and not-to-reappoint is made by unitholders’meeting.

32

Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Institutional Operation)

Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Custodian of List of Unitholders)

Sumitomo Mitsui Trust Bank, Ltd.

Administrator (Accounting)

Ernst & Young Tax Co.

Administrator (Administration of Bond)

Mizuho Bank, Ltd.

Ratio vs Total Number ofUnits Issued (%)

SSBTC CLIENT OMNIBUS ACCOUNTUBS AG LONDON A/C IPB SEGREGATED CLIENT
ACCOUNTTHE BANK OF NEW YORK

Name

Asset Custodian(1) Composition of Assets and Regional Diversification

Canadian Solar Project K.K.

Position

Name
Canadian Solar Asset Management K.K.

3. Overview of Assets under Management(2) Major Unitholders List
Name

Delegated Position
Asset Manager

Type of asset

Region (Note 1)

Hokkaido/Tohoku
Kanto
Solar energy
Tokaifacility
Chugoku/Shikoku
KyushuSubtotal
Hokkaido/Tohoku
Kanto
Tokai
Land
Chugoku/Shikoku
KyushuSubtotal
Hokkaido/Tohoku
Kanto
Tokai
Land lease
Chugoku/Shikoku
KyushuSubtotal
Solar energy
Hokkaido/Tohoku
facility in trust
Subtotal
Land in trust
Hokkaido/Tohoku
Subtotal
Hokkaido/Tohoku
Kanto
Solar energy
Tokaifacility etc.
Chugoku/Shikoku
KyushuSubtotal
Solar energy facility etc. total
Saving/other assets
Asset total (2)6th FP

7th FP

As of Jun. 30, 2020

As of Dec. 31, 2020

Total Asset-UnderManagement(AUM)(‘000yen)(Note 2)
998,200
2,349,633
5,644,544
10,030,169
21,327,299
40,349,847
48,970648,591
63,309523,905
3,184,875
4,469,653
17,92459,197282,151
3,415
390,450
753,139

2.0
4.8
11.5
20.4
43.4
82.1
0.1
1.3
0.1
1.1
6.5
9.1
0.0
0.1
0.6
0.0
0.8
1.5

Total Asset-UnderManagement(AUM)(‘000yen)(Note 2)
978,114
2,297,723
5,527,098
9,805,090
20,562,109
39,170,137
48,970648,591
63,309539,396
3,184,875
4,485,144
17,92459,197282,151
3,415
390,450
753,139--804,355

1.6

1,065,095
3,057,423
5,990,005
10,557,490
24,902,625
45,572,640
45,572,640
3,559,738
49,132,379

2.2
6.2
12.2
21.5
50.7
92.8
92.8
7.2
100.0

804,355
116,748
116,748
1,966,112
3,005,513
5,872,560
10,347,903
24,137,435
45,329,524
45,329,524
3,722,790
49,052,315

1.6
0.2
0.2
4.0
6.1
12.0
21.1
49.2
92.4
92.4
7.6
100.0

% of total AUM(Note 3)% of total AUM(Note 3)

2.0
4.7
11.3
20.0
41.9
79.9
0.1
1.3
0.1
1.1
6.5
9.1
0.0
0.1
0.6
0.0
0.8
1.5

33

Ⅰ. Asset Management Report(Note 1) "Hokkaido/Tohoku" refers to Hokkaido, Aomori prefecuture, Iwate prefecture, Akita prefecutre, Miyagi prefecture, Fukushima
prefecture and Yamagata prefecture. "Kanto" refers to Ibaraki prefecture, Tochigi prefecture, Gunma prefecture Tokyo,
Kanagawa prefecture, Saitama prefecture, Chiba prefecture, Yamanashi prefecture, Nagano prefecture and Niigata prefecture.
"Tokai" refers to Shizuoka prefecture, Aichi prefecture, Gifu prefecture, Mie prefecture, Toyama prefecture, Ishikawa prefecture
and Fukui prefecture. "Chugoku/Shikoku" refers to Okayama prefecture, Hiroshima prefecture, Yamaguchi prefecture, Tottori
prefecture, Shimane prefecture, Kagawa prefecture, Kochi prefecture, Tokushima prefecture and Ehime prefecture. "Kyushu"
refers to Fukuoka prefecture, Oita prefecture, Miyazaki prefecture, Kagoshima prefecture, Kumamoto prefecture, Nagasaki
prefecture, Saga prefecture and Okinawa prefecture. The same applies hereinafter.
(Note 2) AUM refers to the numbers in the balance sheet.
(Note 3) The ratios are rounded off to the first decimal place.

(2) Major Assets List

The summary of the top 10 assets as of December 31, 2020 is as follows.
Rental Revenue Earned byInfrastructure Asset(in JPY thousand)Name of Infrastructure AssetBook Value(in JPY mln)

CS Mashiki-machi Power Plant

994,192

17,867

CS Daisen-cho Power Plant (A) and (B)516,387

9,594

CS Izu-shi Power Plant

211,420

4,438

CS Minamishimabara-shi Power Plant

94,6771,538

CS Minano-machi Power Plant

38,842963

CS Hiji-machi Power Plant

56,436905

CS Ashikita-machi Power Plant

53,190876

CS Isa-shi Dai-san Power Plant

50,357842

CS Kasama-shi Power Plant

39,992831

CS Marumori-machi Power Plant

37,448810

2,092,941

38,664

Total(Note) There are no events which have impacts on any investment decision on infrastructure assets.

(3) Details of Assets

a.Details of Power Generation Facilities(i) Summary

Type of Asset

Beginning Increase Decrease
Balance in the FP in the FP

EndingBalanceAccumulated
Depreciation /Amortization
For this FP

PropertyandEquipment

Intangible
Assets

Structures

1,041

1

-

1,043

106

21

Machinery andEquipment

42,73627336

42,426

4,716

872

Tools,
Furnitureand Fixtures

592

0

2

590

66

11

523

936

4,469

15

-

4,485

-

-

4,485

(Note1)

10

12

6

17

-

-

17

(Note2)

-

33

-

33

0

0

32

(Note3)

-

776

-

776

8

8

768

(Note3)

3

0

0

3

(Note3)-

3-

48,850986

345

49,492

4,898

913

44,593

Total

48,82921-

48,8504,020

911

44,830

753

-

-

753

-

-

753

3

-

-

3

2

0

1

757

-

-

757

2

0

754

Leasehold
RightsSoftware(Note1)

37,710 (Note 1)

Land
Constructionin progress
Structures intrust
Machinery andEquipment in
trust
Tools,
Furnitureand Fixturesin trust
Land in trust

Total

34

Net
Ending Abstract
Balance35

Ⅰ. Asset Management Report(Note1) The increase for the 7th FP is related to the capital expenditure of the power plants. And, the decrease for 7th FP is mainly for thedecrease adjustment of the acquisition price for S-13 CS Mashiki-machi Power Plant.
(Note2)The increases for the 7th FP are related to the disaster recovery constructions for CS Kannami-cho PV. Further construction planfor CS Kannami-cho PV is not determined.
(Note3) The increase for the 7th FP is related to the acquisition of the power plants etc. on September 28, 2020.

(ii) Details of Power Generation Facilities
Asset #

Category

Project Name

Location

Site Area(m2) (Note 1)

Certification
Date

PPA Purchase Price(yen/kwh) (Note 2)(Note 3)

FIT Term End(Note 4)40

February 26,
2013

September
16, 2034

40

February 26,
2013

June 8, 2035

Kasama-shi, Ibaraki

42,666(Note 5)40

January 25,
2013

June 25,2035

CS Isa-shi Daini Power Plant

Isa-shi, Kagoshima

31,81836

October 2,
2013

June 28,
2035

Solar Plant
etc.

CS Yusui-cho
Power Plant

Aira-gun, Kagoshima

25,27436

March 14,2014

August 20,
2035

S-06

Solar Plant
etc.

September
15, 2035

S-07

Solar Plant
etc.

S-01

Solar Plant
etc.

CS Shibushishi Power Plant

Shibushi-shi,
Kagoshima

19,861

S-02

Solar Plant
etc.

CS Isa-shi
Power Plant

Isa-shi, Kagoshima

22,223

S-03

Solar Plant
etc.

CS Kasamashi Power Plant

S-04

Solar Plant
etc.

S-05

S-08

Solar Plant
etc.

CS Isa-shi Daisan Power Plant
CS Kasamashi Dai-niPower Plant
CS Hiji-machi
Power Plant

S-09

Solar Plant
etc.

CS Ashikita-machi
Power Plant

Ashikita-gun,
Kumamoto

S-10

Solar Plant
etc.

CS
Minamishimabarashi Power Plant(East) / CS
Minamishimabarashi Power Plant(West)

Minamishimabara-shi,
Nagasaki

56,06640

February 26,
2013 (East)
February 26,
2013 (West)

S-11

Solar Plant
etc.

CS Minano-machi
Power Plant

Chichibu-gun,
Saitama

44,90432

December11, 2014

December 6,
2036

S-12

Solar Plant
etc.

CS Kannamicho Power Plant

Tagata-gun, Shizuoka

41,33936

March 31,2014

March 2,
2037

S-13

Solar Plant
etc.

CS Mashiki-machi
Power Plant

Kamimashiki-gun,
Kumamoto

638,552(Note 6)36

October 24,
2013

June 1, 2037

S-14

Solar Plant
etc.

CS Koriyamashi Power Plan

Koriyama-shi,
Fukushima

30,376(Note 5)32

February 27,
2015

September
15, 2036

S-15

Solar Plant
etc.

CS Tsuyamashi Power Plant

Tsuyama-shi,
Okayama

31,05932

September
26, 2014

June 29,
2037

S-16

Solar Plant
etc.

CS Ena-shi
Power Plant

Aza Ochise, Kusumi,
Osashima-cho, Ena-shi, Gifu

37,37332

February 24,
2015

September
12, 2037

CS Daisen-choPower Plant(A) and (B)Aza Magoese,
Toyofusa, Daisencho, Saihaku-gun,Tottori (A)Aza Kamikawara,
Toyofusa, Daisencho, Saihaku-gun,Tottori (B)40

February 22,2013 (A)February 28,
2013 (B)

August 9,2037

32

January 30,
2015

October 9,
2037
March 26,
2037

S-17

Solar Plant
etc.

Isa-shi, Kagoshima

40,73640

February 26,
2013

Kasama-shi, Ibaraki

53,27540

January 25,
2013

September23, 2035

Hayami-gun, Oita

30,24636

July 16, 2013

October 12,
2035

40

February 26,
2013

December
10, 2035
December24, 2035(East)
January 28,2036 (West)45,740452,760(Note 7)

S-18

Solar Plant
etc.

CS Takayamashi Power Plant

Shingumachi,
Takayama-shi, Gifu

S-19

Solar Plant
etc.

CS Misato-machi
Power Plant

Misato-machi,
Kodama-gun, Saitama

16,278(Note 5)25,31532

January 6,
2015

S-20

Solar Plant
etc.

CS Marumorimachi Power Plant

Marumori-machi, Igugun, Miyagi

65,306(Note 8)36

February 28,
2014

July 12, 2038

S-21

Solar Plant
etc.

Ono Aza Okubo, Izushi, Shizuoka

337,160

36

March 31,2014

November29, 2038

S-22

Solar Plant
etc.

Ishikari-gun Hokkaido

42,977

24

November18, 2016

July 15, 2039

S-23

Solar Plant
etc.

CS Izu-shi
Power Plant
CS Ishikari
Shinshinotsumura Power
Plant
CS Osaki-shi
Kejonuma
Power Plant

Osaki-shi Miyagi

26,051

21

March 27,
2018

July 21, 2039

(Note 1) The numbers for “Site Area” are not equal to the real situation but based on the ground register.
(Note 2) “PPA Purchase Price” are the FIT price for each power plant (excluding consumption tax amount).

3637

Ⅰ. Asset Management Report(Note 3) “Certification Date” denotes the date each power plant is certified under the article 6.1 of Revision Renewable Energy Special
Measures Law. Each power plant is deemed being certified on April 1, 2017 based on the article 9.3 of Revision Renewable
Energy Special Measures Law.
(Note 4) “FIT Term End” denotes the date 20-year FIT term ends for each power plant.
(Note 5) The number for the site area is only for the power plant’s land ownership rights and doesn’t include easement.
(Note 6) The number for the site area is only for the power plant’s and self-employed line’s land ownership rights and doesn’t include
easement.
(Note 7) The number for the site area is only for the power plant’s and self-employed line’s surface right and doesn’t include leasehold
right and easement.
(Note 8) The number for the site area is only for the power plant’s, self-employed line’s and access road’s surface right and doesn’t
include easement.

PPA company

Acquisition Fiscal periodPriceend valuation(million yen) (million yen)

Asset #

Project name

Certified Operator

S-01

CS Shibushishi Power Plant

Tida Power 01
G.K

Kyushu ElectricPower Co., Inc

540

504

S-02

CS Isa-shi
Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

372

334

S-03

CS Kasamashi Power Plant

Tida Power01
G.K.

TEPCO Energy
Partner, Incorporated

907

972

S-04

CS Isa-shi Daini Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

778

695

S-05

CS Yusui-cho
Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

670

599

S-06

CS Isa-shi Daisan Power Plant

Tida Power01
G.K..

Kyushu ElectricPower Co., Inc

949

859

S-07

CS Kasama-shi
Dai-ni Power Plant

Tida Power01
G.K..

TEPCO Energy
Partner, Incorporated

850

845

S-08

CS Hiji-machi
Power Plant

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc

1,029

922

S-09

CS Ashikita-machi
Power Plant

Tida Power01
G.K..

Kyushu ElectricPower Co., Inc

989

903

S-10

CS Minamishimabarashi Power Plant(East) / CS
Minamishimabara-shi
Power Plant (West)

Tida Power 01
G.K.

Kyushu ElectricPower Co., Inc

1,733

1,682

S-11

CS Minano-machi
Power Plant

Tida Power01
G.K.

TEPCO Energy
Partner, Incorporated

1,018

1,061

S-12

CS Kannami-cho
Power Plant

Tida Power01
G.K..

TEPCO Energy
Partner, Incorporated

514

526

S-13

CS Mashiki-machi
Power Plan

Tida Power01
G.K.

Kyushu ElectricPower Co., Inc.

19,751

20,385

S-14

CS Koriyamashi Power Plan

Tida Power01
G.K..

Tohoku ElectricPower Co., Inc.

246

237

S-15

CS Tsuyamashi Power Plan

Tida Power01
G.K..

The Chugoku ElectricPower Co., Inc.

746

724

S-16

CS Ena-shi
Power Plant

Tida Power01
G.K..

The Chubu ElectricPower Co., Inc.

757

775

S-17

CS Daisen-cho Power
Plant (A) and (B)Tida Power01
G.K..

The Chugoku ElectricPower Co., Inc.

10,447

10,046

S-18

CS Takayamashi Power Plant

Tida Power01
G.K.

The Chubu ElectricPower Co., Inc.

326

315

S-19

CS Misato-machi
Power Plant

Tida Power01
G.K.

TEPCO Energy
Partner, Incorporated

470

447

S-20

CS Marumorimachi Power
Plant

Tida Power01
G.K.

Tohoku ElectricPower Co., Inc.

S-21

CS Izu-shi
Power Plant

Tida Power01
G.K. (Note5)(Note 1)

S-22

S-23

CS Ishikari
Shinshinotsumura Power
Plant
CS Osaki-shi
Kejonuma
Power Plant(Note 2)

365
139
312

492
331

22
732
240
655

831

40
569
29
802

593

56
807
37
884

747

38
865
37

687

842

905
876

1,605
1,538
76

850

800

TEPCO Power Grid,
Incorporated

4,569

4,383

Tida Power01
G.K. (Note5)

Hokkaido ElectricPower Network Co.,
Ltd.

680

666

Tida Power01
G.K. (Note5)

Tohoku ElectricPower Co.,Inc.

208

205

49,40548,890

Total

Appraisal value of Fiscal period
solar plants
end book(million yen)(Note 3) value (million
yen)(upper:solar energy(Note 4)
facility) (lower:land)

804
257
484

963
461

42
16,8053,580
186

17,867

51
588
136
738

753

36
9,694
352
254

9,594

61
326
121
783
16
4,143
240
597
68
165
39
43,171
5,718

234

659

312
462
810
4,438

699

221
45,329(Note 1) Acquisition price is based on acquisition price as described in the purchase agreements (excluding acquisition expenses related
to the payment of outsourcing service fees, property-related taxes, taxes on depreciable assets, urban planning taxes,
consumption taxes and other fees).

38

39

Ⅰ. Asset Management Report(Note 2) For S-01 to S-18, the fiscal period end valuation is the median amount that the Investment Corporation calculated in accordancewith Article 41, paragraph 1 of the CSIF's Articles of Incorporation based on the range of valuation provided to us byPricewaterhouseCoopers Sustainability LLC and, for S-19 to S-23, the fiscal period end valuation is based on the medianamount provided to us by Ernst & Young Transaction Advisory Services Co., Ltd. in its project valuation report.
(Note 3) On the upper row of the appraisal value of solar plants, an assumed appraisal value of solar energy projects that is obtained bydeducting the real estate appraisal value calculated by Daiwa Real Estate Appraisal Co., Ltd. from the appraised value at theend of the period in (Note 2) above is stated, and on the lower row, an amount stated in the real estate appraisal report preparedby Daiwa Real Estate Appraisal Co., Ltd. is stated. Real estate includes its superficies right.
(Note 4) Fiscal period end book value is the book value of solar energy as of June 30, 2019.
(Note 5) Former certified operator,CS Hokkaido Ishikari G.K. for CS Ishikari Shinshinotsu-mura Power Plant and CS Miyagi Kejonuma
G.K. for CS Osaki-shi Kejonuma Power Plant, were merged into Tida Powe01 G.K. as of December 3, 2020.
(Note 6) The acquisition price of CS Mishiki Power Plant had reduced in the amount of 332 million yen on December 16, 2020, back fromthe signing date of the Property Purchase Agreement.

(iii) Operational Results of Each Power Generation Facilities (in JPY thousand)S-01 CS Shibushi-shi Power Plant
Accounting Item

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

19,23518,727

19,137

18,632

19,0397,474－
26,7106,605－
25,332

6,288－
25,426

3,336－
21,968

7,573−
26,612

2,664
2,664
－
1,912
1,745
－
－
166
－
－
9,456
445
8,969
41
14,032
12,677

2,254
2,254
－
1,907
1,701
－
－
205
－
－
9,459
447
8,970
41
13,621
11,711

2,254
2,254
－
2,296
2,073
－
－
223
－
－
9,472
457
8,973
41
14,023
11,402

1,917
1,917
－
2,273
2,014
－
－
258
－
－
9,472
457
8,973
41
13,663
8,304

1,916
1,916
−
2,114
1,872
−
−
241
−
−
9,472
457
8,973
41
13,503
13,109Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

-02 CS Isa-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

14,244
7,166－
21,411

14,313
5,648－
19,961

14,171
5,230－
19,402

14,2403,522－
17,76314,0996,502−
20,602

1,346
1,346
－
2,248
1,328
－
－
141
778
－
7,833
256
7,559
17
11,428
9,982

1,699
1,699
－
2,261
1,299
－
－
168
794
－
7,835
256
7,561
17
11,796
8,165

1,698
1,698
－
2,635
1,655
－
－
182
797
－
7,837
256
7,563
17
12,170
7,232

1,452
1,452
－
2,617
1,610
－
－
209
797
－
7,837
256
7,563
17
11,907
5,855

1,456
1,456
−
2,241
1,247
−
−
197
797
−
7,837
256
7,563
17
11,535
9,066(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

40

41

Ⅰ. Asset Management Report
S-03 CS Kasama-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-05 CS Yusui-cho Power Plant
3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

29,54911,846
110
41,50635,327
17,266
202
52,79629,39910,669173
40,24235,147
14,79594
50,03829,24910,743−39,992

3,050
3,050
－
4,359
3,033
1,025
－
299
－
－
14,462324
14,10433
21,872
19,634

3,791
3,791
－
3,277
2,931
－
－
346
－
－
14,462324
14,10433
21,532
31,264

3,792
3,792
－
3,255
2,879
－
－
375
－
－
14,462324
14,10433
21,51018,731

3,283
3,283
－
3,322
2,887
－
－
434
－
－
14,462324
14,10433
21,06828,970

3,284
3,284
−
3,461
3,051
−
−
409
−
−
14,462324
14,10433
21,207
18,784S-04 CS Isa-shi Dai-ni Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income(Note)
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

29,412
11,590－41,00329,51010,641－
40,152

29,263
9,522－
38,78529,3605,875－
35,235

29,114
12,142−
41,257

2,964
2,964
－
5,150
2,871
418
－
269
1,590
－
16,445306
16,09741
24,55916,443

3,768
3,768
－
5,236
2,866
458
－
320
1,590
－
16,449306
16,101
41
25,454
14,697

3,768
3,768
－
4,695
2,756
－
－
347
1,590
－
16,457306
16,10941
24,92013,864

3,232
3,232
－
4,653
2,659
－
－
402
1,590
－
16,457306
16,10941
24,343
10,892

3,230
3,230
−
5,646
3,677
−
−
378
1,590
−
16,457306
16,10941
25,334
15,922

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

23,595
10,410－34,006

26,827
5,533－
32,361

23,476
8,425－
31,901

26,691
3,444－
30,13523,356
10,114−33,471

2,634
2,634
－
4,010
2,494
－
－
252
1,263
－
14,229571
13,423
235
20,873
13,132

3,277
3,277
－
3,987
2,425
－
－
298
1,263
－
14,242582
13,425
235
21,507
10,853

3,274
3,274
－
4,438
2,850
－
－
324
1,263
－
14,260595
13,429235
21,972
9,928

2,805
2,805
－
4,508
2,869
－
－
375
1,263
－
14,263598
13,429235
21,577
8,558

2,802
2,802
−
4,510
2,893
−
−
353
1,263
−
14,263598
13,429235
21,575
11,895(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-06 CS Isa-shi Dai-san Power Plant
Accounting Item

(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

42

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

35,02815,056－50,08535,695
12,165－47,86034,851
11,728－46,57935,514
7,953－
43,467

34,673
15,683－50,357

3,526
3,526
－
5,500
3,172
－
－
290
2,036
－
19,783290
19,44151
28,80921,275

4,494
4,494
－
5,551
3,080
84
－
349
2,036
－
19,784290
19,44351
29,83018,030

4,494
4,494
－
5,459
3,042
－
－
379
2,036
－
19,799290
19,45851
29,753
16,826

3,876
3,876
－
6,385
3,907
－
－
441
2,036
－
19,861
290
19,52051
30,123
13,343

3,874
3,874
－
5,829
3,377
－
－
414
2,036
－
19,861
290
19,52051
29,564
20,792(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

43

Ⅰ. Asset Management Report
S-07 CS Kasama-shi Dai-ni Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-09 CS Ashikita-machiPower Plant
3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

29,161
12,354－41,51634,897
16,386－
51,28429,013
9,415－
38,42934,72014,507－49,22728,865
9,763−
38,629

3,370
3,370
－
6,000
3,318
－
－
285
2,396
－
17,604247
17,31442
26,975
14,541

4,304
4,304
－
6,964
3,532
700
－
335
2,396
－
17,604247
17,31442
28,873
22,410

4,304
4,304
－
5,606
2,847
－
－
362
2,396
－
17,604247
17,31442
27,514
10,914

3,689
3,689
－
5,695
2,881
－
－
417
2,395
－
17,604247
17,31442
26,98822,238

3,688
3,688
−
5,802
3,012
−
−
393
2,396
−
17,604247
17,31442
27,095
11,534S-08 CS Hiji-machi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

37,673
17,650－55,32337,94915,805－53,75537,482
10,943－
48,42637,757
10,964－
48,72137,292
19,144−56,436

4,112
4,112
－
5,682
3,733
75
－
361
1,512
－
22,064835
21,114114
31,85823,464

5,167
5,167
－
5,622
3,562
－
－
419
1,639
－
22,066835
21,116114
32,85520,899

5,166
5,166
－
5,547
3,578
－
－
456
1,512
－
22,070835
21,120114
32,783
15,643

4,427
4,427
－
5,524
3,391
－
－
530
1,602
－
22,070835
21,120114
32,021
16,700

4,426
4,426
−
5,894
3,881
−
−
498
1,514
−
22,070835
21,120114
32,39024,045

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

37,301
15,543－
52,84535,753
12,815－48,56837,113
11,371－
48,48435,571
8,257－
43,82936,924
16,265−53,190

3,972
3,972
－
5,431
3,347
66
－
336
1,681
－
20,203
1,441
18,509252
29,60623,238

4,879
4,879
－
5,337
3,249
－
－
406
1,681
－
20,207
1,441
18,514252
30,424
18,144

4,876
4,876
－
5,880
3,758
－
－
440
1,681
－
20,216
1,441
18,523
252
30,973
17,511

4,167
4,167
－
6,154
3,964
－
－
509
1,681
－
20,216
1,441
18,523
252
30,53913,290

4,164
4,164
−
5,723
3,562
−
−
479
1,681
−
20,216
1,441
18,523
252
30,10423,086(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-10 CS Minamishimabara-shi Power Plant (East and West)
Accounting Item

(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

44

Accounting Item

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

65,85430,406－
96,26063,48827,370－90,85965,521
20,782－86,30363,166
13,840－77,006

65,18829,488−94,677

6,744
6,744
－
10,331
5,601
－
－
469
4,260
－
35,224739
34,235248
52,29943,960

8,533
8,533
－
11,314
6,502
－
－
551
4,260
－
35,224739
34,235248
55,07135,787

8,530
8,530
－
10,188
5,317
－
－
611
4,260
－
35,224739
34,235248
53,94332,360

7,296
7,296
－
10,118
5,127
－
－
731
4,260
－
35,224739
34,235248
52,63924,367

7,296
7,296
−
10,791
5,840
−
−
689
4,260
−
35,224739
34,235248
53,311
41,366(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

45

Ⅰ. Asset Management Report
S-11 CS Minano-machi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-13 CS Mashiki-machi Power Plant
3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

30,8439,769
140,61435,51915,005－50,52530,6882,722－
33,41035,34010,950－46,291

30,5338,305
338,842

4,904
4,904
－
4,143
3,491
330
－
321
－
－
15,798766
15,031－
24,845
15,769

4,412
4,412
－
3,953
3,372
178
－
402
－
－
16,132766
15,366－24,49926,025

4,410
4,410
－
3,750
3,313
－
－
436
－
－
16,132766
15,366－24,293
9,117

3,816
3,816
－
3,700
3,195
－
－
504
－
－
16,132766
15,366－
23,64922,642

3,816
3,816
−
4,909
4,432
−
−
476
−
−
16,198766
15,432−
24,924
13,918

S-12 CS Kannami-cho Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

46

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output(Note)
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

19,6449,060－
28,70518,456
5,304－
23,76019,545
7,872－
27,41818,363
5,528−
23,892

2,770
2,770
－
3,978
1,905
－
－
125
1,947
－
9,639
357
9,226
55
16,388
7,402

2,398
2,398
－
3,735
1,840
42
－
198
1,653
－
9,662
380
9,226
55
15,796
12,908

2,398
2,398
－
3,976
2,108
－
－
213
1,654
－
9,662
380
9,226
55
16,036
7,724

2,069
2,069
－
3,641
1,743
－
－
243
1,654
－
9,662
380
9,226
55
15,373
12,045

2,068
2,068
−
5,371
1,832
1,653
−
231
1,654
−
9,662
380
9,226
55
17,101
6,790

4th FP

5th FP

6th FP

7th FP

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

691,759
254,45012
946,222664,560
247,774－
912,334

688,283
232,965－
921,249

661,218
167,511－
828,729684,807309,385−
994,192

112,206
112,206－
67,63861,168
－
－
6,397
71
－
344,335
3,531
332,915
7,888
524,180
422,042

96,65096,650－68,91861,168
－
－
7,703
45
－
344,340
3,531
332,915
7,893
509,908
402,426

96,65096,650－69,02660,428
176
－
8,356
65
－
344,350
3,531
332,916
7,902
510,027
411,22183,464
83,464－72,071
62,244
98
－
9,662
65
－
344,5123,531
333,078
7,902
500,048
328,680

83,464
83,464−90,501
81,080
226
−
9,148
45
−
337,941
3,551
326,487
7,902
511,906
482,286(Note)As a result of the failure of the wheeling charge calculation system of Kyushu Electric Power Co., Inc.,, CSIF determined variable rent linked to actual output for
December 2019 based on output measured by the monitoring system. CSIF has received notification of purchased electricity for December 2019 and, therefore,
adjusted variable rent linked to actual output on February 10, 2020 to ensure that the variable rent linked to actual output is based on the purchased electricity
stated in the notification of purchased electricity. CSIF judges that the impact of this adjustment on income in the current fiscal period is insignificant.

S-14 CS Koriyama-shi Power Plant
Accounting Item

18,5505,241－
23,791

3rd FP
Fr. Jul. 1, 2018
To Dec. 31, 2018

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

7,619
3,978
2
11,600

8,085
5,215
－
13,300

7,580
3,317
2
10,901

8,044
4,396
－
12,441

7,542
2,880
2
10,426

－
－
－
1,081
922
－
－
158
－
－
4,191
327
3,864
－
5,272
6,328

1,298
1,298
－
990
883
－
－
106
－
－
4,191
327
3,864
－
6,479
6,820

1,296
1,296
－
1,590
876
600
－
113
－
－
4,191
327
3,864
－
7,077
3,823

1,171
1,171
－
965
837
－
－
128
－
－
4,191
327
3,864
－
6,328
6,113

1,168
1,168
−
952
829
−
−
122
−
−
4,191
327
3,864
−
6,311
4,114

47

Ⅰ. Asset Management Report
S-15 CS Tsuyama-shi Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-17 CS Daisen-cho Power Plant (A and B)
3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

22,253
10,447－32,701

24,444
12,668－37,11322,141
12,485－34,627

24,321
12,548－36,86921,796
10,929−32,725

－
－
－
3,156
2,846
－
－
310
－
－
12,768348
12,114304
15,924
16,776

3,901
3,901
－
10,045
2,727
7,096
－
221
－
－
12,946365
12,276304
26,893
10,219

3,898
3,898
－
2,982
2,704
－
－
278
－
－
12,949376
12,267304
19,82914,797

3,469
3,469
－
3,482
3,206
－
－
275
－
－
12,914376
12,232
304
19,86617,003

3,468
3,468
−
4,820
3,078
1,746
－
261
3
−
13,061376
12,380304
21,35011,375

S-16 CS Ena-shi Power Plant

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

48

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

211,123
29,966－
241,089

327,901
247,066－
574,967

385,926
121,853－
507,780

326,253
268,083－
594,336

383,529
132,857－
516,387－－－
34,45023,490
140
－
2,511
8,308
－
136,406
3,088
132,820497
170,857
70,232

59,954
59,954－54,49836,805－－
4,622
13,070－214,526
4,863
208,879782
328,979
245,988

59,954
59,954－53,88536,009－－5,019
12,856－
214,565
4,902
208,879
782
328,404
179,375

51,761
51,761－
54,60436,036－－
5,812
12,755－
214,567
4,905
208,879
782
320,933
273,403

51,76051,760−61,71043,616−−
5,500
12,593−
214,567
4,905
208,879782
328,038
188,349

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

4,937
1,841
－
6,779

11,075
5,290－
16,365

9,720
4,625
－
14,346

11,0194,989－
16,009

9,671
3,829
−
13,501

－
－
－
891
828
－
－
62
－
－
3,494
218
3,267
8
4,386
2,393

2,007
2,007
－
1,411
1,296
－
－
114
－
－
5,496
344
5,139
12
8,915
7,450

2,006
2,006
－
1,393
1,269
－
－
123
－
－
5,496
344
5,139
12
8,895
5,450

1,762
1,762
－
1,399
1,256
－
－
142
－
－
5,496
344
5,139
12
8,657
7,351

1,762
1,762
−
1,391
1,256
−
−
135
−
−
5,496
344
5,139
12
8,649
4,851

S-18 CS Takayama-shi Power Plant
3rd FP

Accounting Item

Accounting Item

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

14,524
7,383－
21,90826,39815,982－42,381

25,611
12,203－37,81526,266
14,224－40,49025,482
13,562
4
39,050

－
－
－
2,561
1,827
－
－
138
595
－
9,226
374
8,790
61
11,788
10,120

4,344
4,344
－
4,306
3,115
－
－
252
938
－
14,510589
13,823
97
23,161
19,219

4,344
4,344
－
4,007
2,801
－
－
273
933
－
14,510589
13,823
97
22,862
14,953

3,776
3,776
－
4,288
2,772
－
－
314
1,202
－
14,510589
13,823
97
22,576
17,914

3,776
3,776
−
4,552
3,051
−
−
298
1,202
−
14,510589
13,823
97
22,83916,211

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

49

Ⅰ. Asset Management Report
S-19 CS Misato-machi Power Plant
Accounting Item

S-21 CS Izu-shi Power Plant
3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

－
－
－
－

10,733
6,273－
17,006

13,005
5,628－
18,63415,3007,717－
23,017

12,9396,517−
19,457

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
877
877
－
－
－
－
－
5,056
117
4,896
41
5,934
11,072

－
－
－
2,230
1,315
645
－
269
－
－
7,594
176
7,345
72
9,824
8,809

2,646
2,646
－
1,506
1,315
－
－
190
－
－
7,594
176
7,345
72
11,747
11,270

2,644
2,644
−
1,743
1,562
−
−
181
−
−
7,594
176
7,345
72
11,982
7,474

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

－
－
－
－

－
－
－
－

17,832
8,750－
26,582

155,81384,936－
240,749

141,970
69,450−211,420

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
3,786
2,270
－
－
－
1,516
－
15,742732
14,755254
19,528
7,053

28,252
28,252－
21,398
12,770
－
－
－
8,628
－
87,776
4,082
82,271
1,421
137,427
103,322

28,252
28,252−27,011
12,770−−3,525
10,716−
87,776
4,082
82,271
1,421
143,039
68,380Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Other rental expense)
Depreciation expenses(Structures)(Machinery and equipment)(Tools, furniture and fixtures)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

S-22 CS Ishikari Shinshinotsu-mura Power Plant

S-20 CS Marumori-machi Power Plant
Accounting Item

Accounting Item

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

－
－
－
－

17,98911,768－29,75828,3306,694－
35,02532,391
15,151－47,542

28,1889,260−
37,448

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
3,730
1,376
－
－
－
2,354
－
8,847
261
8,464
121
12,57817,179

－
－
－
8,421
2,666
346
－
782
4,625
－
17,036503
16,297234
25,457
9,567

5,430
5,430
－
8,059
2,797
－
－
526
4,735
－
17,036503
16,297234
30,526
17,016

5,430
5,430
−
13,151
2,666
5,227
−
513
4,744
−
17,051503
16,313234
35,633
1,815

Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Trust fees)(Other rental expense)
Depreciation expenses(Structures in trust)(Machinery and equipment in trust)(Tools, furniture and fixtures in trust)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

－
－
－
－

－
－
－
－

－
－
－
－

－
－
－
－

11,9163,884－
15,800

－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－

－
－

－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
2,639
2,074
－
－
165
－
400
－
6,533
186
6,326
20
9,173
6,627

(Note)The operating term for the 7th FP is 184days, but S-22 CS Ishikari Shinshinotsu-mura Power Plantt was acquired on September 28, 2020, therefore, the facility's
operating term is 95 days.

50

51

Ⅰ. Asset Management Report
4. Capital Expenditures for Assets under Management

S-23 CS Osaki-shi Kejonuma Power Plant
Accounting Item
Rental revenue of renewable energy power plant
Basic rent
Variable rent linked to actual output
Incidental income
Total of rental revenue of renewable energy power plant (A)Expense for rental of renewable energy power plant
Tax and public dues
(Property tax)
(Other and public dues)
Other expenses(Management entrustment expenses)(Repair and maintenance costs)(Utilities expenses)(Insurance expenses)(Land rent)(Trust fees)(Other rental expense)
Depreciation expenses(Structures in trust)(Machinery and equipment in trust)(Tools, furniture and fixtures in trust)
Total of expense for rental of renewable energy power plant (B)Income from rental of renewable energy power plant (A-B)(1) Scheduled Capital Expenditures

3rd FP

4th FP

5th FP

6th FP

7th FP

Fr. Jul. 1, 2018
To Dec. 31, 2018

Fr. Jan. 1, 2019
To Jun. 30, 2019

Fr. Jul. 1, 2019
To Dec. 31, 2019

Fr. Jan. 1, 2020
To Jun. 30, 2020

Fr. Jul. 1, 2020
To Dec. 31, 2020

－
－
－
－

－
－
－
－

－
－
－
－

－
－
－
－

3,741
1,510
－
5,251

－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－

－
－

－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

－
－
－
1,054
793
－
－
61
－
200
－
1,858
155
1,691
12
2,913
2,337

(Note)The operating term for the 7th FP is 184days, but S-23 CS Osaki-shi Kejonuma Power Plant was acquired on September 28, 2020, therefore, the facility's
operating term is 95 days.

b.Details of Investment in Operating Rights for Public Facilities
Not applicable.
c.Details of Investment in Real Estate
The real estate that CSIF holds are to be provided for the use of renewable energy power generation
facilities and described in “(3) Details of Assets / a. Details of Power Generation Facilities / (i) Summary”
above.
d.Details of Investment in Securities
Not applicable.

Transaction Outsideof Market

Interest Rate Swap
Total

Contracted Amount(Note 1)

20,187,606
20,187,606

Over 1 year
(Note 1)

Location

PurposeCS Kannamicho Power
Plant

Kannamicho
Shizuoka

Disaster recovery
construction

Projected period

TotalamountAmountpaid during
the fiscal
periodunderreview

Amountpaid byprior FP

49

17

17

From September
2020
To January 2021

(2) Capital Expenditures during the Period

The following table shows capital expenditures for renewable energy power generation facilities, etc.
owned by CSIF during the fiscal period under review.
Name of infrastructure
assets, etc. (Location)

Purpose

Implementation period

Amount paid
(thousand yen)

From April 15, 2020
To July 6, 2020

3,951

CS Mashiki-machi Power Plant(Kami mashiki-gun, Kumamoto)

Modification works forcommunication equipment
at interconnection point
Remodeling work foronline curtailment

From April 1, 2020
To October 30, 2020

16,916

CS Tsuyama-shi Power Plan
(Tsuyama-shi, Okayama)

The third-round recovery
work from disaster

From April 1, 2020
To July 20, 2020

18,606

CS Tsuyama-shi Power Plan
(Tsuyama-shi, Okayama)

Reconnecting work for
PCS strings

From August 1, 2020
To August 31, 2020

1,985

CS Marumori-machi Power Plant(Igu-gun, Miyagi)

Remodeling work foronline curtailment

From June 5, 2020
To August 24, 2020

1,157

CS Minano-machi Power Plant(Chichibu-gun, Saitama)

1,969(Note 2)

18,939,441
18,939,441(5) Location of Assets by Country
There is no asset in the countries outside Japan as of December 31, 2020.

44,584(3) Cash Reserved for Long-term Maintenance Plan
Not applicable.

5. Summary of Expenses and Debts

Fair Value(Note 1) The contracted amount is based on notional amount.
(Note 2) As the transaction is booked based on special treatment under the financial instrument accounting standard, the fair value isomitted.

52

Name ofinfrastructure
assets, etc.

Total

Assets related to the power plants are described in “(3) Details of Assets / a. Details of Power Generation
Facilities / (iii) Operational Results of Each Power Generation Facilities (in JPY thousand)” and other assets
as of December 31, 2020 are as follows.
Type

Projected amount(million yen)

Other plants(4) Other Assets

Category

The following table shows capital expenditures for renewable energy power generation facilities, etc.
owned by CSIF during the following fiscal periods. The amount includes the portion which is to be treated as
the expense during the period.

(1) Summary of Expenses-

Fiscal Period
Asset Management Fee
Administrative Service Fee
Directors’ Compensation
Other Operating Expenses
Total

6th FP

7th FP

From January 1, 2020
To June 30, 2020

From July 1, 2020
To December 31, 2020

59,407
19,4022,400
47,705
128,91561,062
18,994
2,400
63,348145,805

53

Ⅰ. Asset Management Report(2) Summary of Debts
Category

BorrowingDate(3) Investment Corporation Bond
Beginning
BalanceEndingBalance

Average
Interest
Rate (%)

Repayment
Date

Repay
ment
MethodUse

Abstract

Issue
date
November
6, 2019

Mizuho Bank, Ltd.

1,299

1,260

Canadian Solar
Infrastructure
Investment
Corporation / The 1st
Unsecured Bond

Sumitomo Mitsui
Banking Corporation

1,299

1,260

Total

Lender(Note 1)Long-term
Shinsei Bank, Ltd.

2,079

2,016

MUFG Bank, Ltd.

866

840

Resona Bank, Ltd.

1,559

1,512

866

840

Orix Bank
Corporation

October 31,
2017

The Hiroshima
Bank, Ltd.

1,512

Nanto Bank, Ltd.

1,559

1,512

The Oita Bank, Ltd.

779

756

The Shonai Bank, Ltd.

779

756

The Mie Bank, Ltd.

173

168

The Tochigi Bank, Ltd.

779

756

Shinsei Bank, Ltd.

1,560

1,514

Sumitomo Mitsui
Banking
Corporation

1,560

1,514

1,802

1,749

MUFG Bank, Ltd.
Nanto Bank, Ltd.

September
6, 2018

901

874

The Ashikaga
Bank, Ltd.

923

896

The Hiroshima
Bank, Ltd.

461

448

Shinsei Bank, Ltd.

March 29,
2019

643

623

Shinsei Bank, Ltd.

972

944

MUFG Bank, Ltd.

680

661

486

472

The Ashikaga
Bank, Ltd.

November29, 2019

972

944

Nanto Bank, Ltd.

486

472

The Hiroshima
Bank, Ltd.

778

755

The Shonai Bank, Ltd.

0.84500

October 31,
2027

Partialamortization(Note 3)

Unsecured andno guarantee

Total

September
28, 2020―

25,831(million yen)EndingBalance

Interest
rate

Redemption
date

Redemption
methodPurpose

Abstract

1,100

1,100

0.71

November
6, 2024

Bullet(Note)

Unsecuredand noguarantee

1,100

1,100

(%)

(4) Short-term Investment Corporation Bond
Not applicable.

(5) Unit Acquisition Right
Not applicable.

6. Sales and Purchases during the Period(1) Summary for Sales and Purchases of Infrastructure Assets, Infrastructure-related
Assets, Real Estate and Asset-backed Securities
1.04200(Note 2)September
6, 2028

Partialamortization(Note 3)

Unsecured andno guarantee

Asset
No,

Name

PurchaseAmount（in JPY
Date
min）

Sales

Date

（Note）

0.57646

0.57646

March 29,2022

PartialamortizationNovember29, 2021

PartialamortizationS-22(Note 3)

Unsecured andno guarantee

S-23

CS Ishikari
Shinshinotsumura Power Plant
CS Osakishi
Kejonuma
Power Plant
Total(Note 3)

Unsecured andno guarantee

Amount（in JPY
min）

Book Value（in JPY
min）

Profit / Loss（in JPY
min）

September
28, 2020

680

−

−

−

−

September
28, 2020

208

−

−

−

−

−

888

−

−

−

−

(Note)"Amout"is the purchase price based on the purchase contract and excludes costs such as property
tax and comsumption tax.

(2) Summary for Sales and Purchases of Other Assets

Current portion of long-term loans payable

Mizuho Bank, Ltd.

(million yen)

(Note) The purpose is repayment of the debt whose maturity is approaching, payment of future acquisition cost of specified assets,
payment of repair cost and capital expenditure, and working capital.

(Note 2)

1,559

Beginningbalance

Name of Investment
Corporation Bond

Not applicable.

981

0.36893

September
28, 2021

Partialamortization(Note 3)

Unsecured andno guarantee

26,042(Note 1) Average interest rate are based on actual number of days and weighted average. The number are rounded down.
(Note 2) For the debts with interest rate swap for hedging interest rate risk, the average interest rate incorporates the effect of suchinterest rate swap.
(Note 3) The uses of the debt proceeds are the purchase of power plants.

(3) Valuation of Specified Assets
a.Real Estate(appraisal value)
Purchaseor SalesName

CS Ishikari
Purchace Shinshinotsumura
Power Plant
CS Osakishi
Purchase Kejonuma Power
Plant
Total

Transaction Date

Purchase Price（in JPY min）

Appraisal Value（in JPY min）

（Note 1）

（Note 2）

Valuation Date

September 28, 2020

70

70

June 30, 2020

September 28, 2020

40

40

June 30, 2020

−

110

110

−

(Note 1) "Purchase Price" denotes the contracted price for land ownership night or land surface right.
(Note 2) Daiwa Estate Appraisal Co.,Ltd. is the appraiser.

54

55

Ⅰ. Asset Management Reportb.Infrastructure Asset
Purcha
se or
Sales

Name

CS Ishikari
Purcahse Shinshinotsumura
Power Plant
CS Osakishi
Purchase Kejonuma Power
Plant
Total

Transaction
Date

Purchase Price（in JPY min） Asset Value（Note 1） （in JPY min） Valuation Date
（Note 2）
（Note 1）

7. Summary of Accounts(1) Summary of Assets, Liabilities, Capital and Income/Loss

Please see the balance sheet, statement of income, statement of changes in unitholders’ equity, note andstatement of cash distribution.

September 28, 2020

680

662～702

September 1, 2020

(2) Change in Calculation Method of Depreciation

September 28, 2020

208

203～217

September 1, 2020

(3) Change in Valuation Method of Infrastructure Assets and Real Estate−888

865～919−(Note 1) "Purchase Price" denotes the contracted price on the purchase agreement.
(Note 2) "Asset Value" includes the appraisal value of the real estate mentioned in "a. Real Estate(appraisal value)"above.
(Note 3) The investigation of the asset valuce is conducted by Grant Thomtom Taiyo LLC based on theguideline NO,23 published by JICPA.

a.Sales and Purchases(4) Company Setting Investment Trust Beneficial Securities
Not applicable.

8. Other(1) Notificationb.Board of Executives Meeting
Not applicable.

Purchase / Sales Amount（Note 2）

Total
Breakdown of Transactions with Interested
Parties(Note 1)
CSHokkaido Ishikari Godo Kaisha
CSMiyagi Kejonuma Godo Kaisha
Total

Not applicable.

a.Unitholders’ Meeting
No unitholders’ meeting was held during the FP.

(4) Transactions with Interested Parties

Category

Not applicable.

Purchase Amount（in JPY
thousand）
888,000

680,000
208,000
888,000

Sales Amount（inJPY thousand）(2) Treatment of Amount and Ratio with Fractional Point

Unless otherwise described, the amounts are rounded down and the ratio are rounded up or down.

−（76.6％）（23.4％）（100.0％）

−
−
−

（−％）
（−％）
（−％）

(Note 1) The definition of "Interested Parties" is depending on the relevant law.
(Note 2) The amounts are based on the amount stated in the purchase and sales agreement of the assets.
(Note 3) The parties above were the interested parties at the time of purchase of the assets.But, after thepurchase, they were no longer the interested parties.
b.LeaseNot applicable.
c.Commission Paid
Not applicable.

(5) Asset Manager’s Transaction Related to Asset Manager’s Other Business

Asset Manager doesn’t conduct any of the type1 and type2 financial instrument exchange business, realestate transaction business and specified joint real estate ventures. There was no applicable transaction
during the period.

56

57

Ⅱ. Balance Sheet(Unit: thousand yen)

6th Period(June 30, 2020)(Unit: thousand yen)

7th Period(December 31, 2020)

Assets

6th Period(June 30, 2020)
Liabilities

Current Assets
Cash and bank deposit

Current liabilities

2,627,638

2,828,532

Operating accounts receivable

477,976362,206

Accounts payable – operating

Prepaid expenses

109,917

155,628

Current portion of long-term loans payable−

26,241Other current assets

1,799

2,130

Total current assets

3,217,332

3,374,740

Consumption taxes receivable

Property and equipment
Structures
Accumulated depreciation
Structures, net

1,041,843

1,043,042(85,025)(106,526)

956,818

936,515

Accumulated depreciation

42,736,685(3,880,573)

Machinery and equipment ,net

38,856,111

37,710,136

Accumulated depreciation

592,249(55,331)590,418(66,933)

Tools, furniture and fixtures, net

536,917

523,485

4,469,653

4,485,144

10,56017,017−33,071

Accumulated depreciation

−

(341)

Structures in trust, nett−−

32,729776,471

Tools, furniture and fixtures

Land
Construction in progress
Structures in trust

Machinery and equipment in trust※2※2

42,426,996(4,716,860)

Accumulated depreciation−(8,017)

Machinery and equipment in trust ,net−−

768,453
3,204

Accumulated depreciationt

−

(33)

Tools, furniture and fixtures in trust, netLand

−

3,171

Tools, furniture and fixtures in trust

Land in trust
Total property and equipment−

116,748

44,830,061

44,593,402

Intangible assets
Leasehold rights
SoftwareTotal intangible assets

753,139

753,139

1,960

1,566

755,099754,706

284,425

269,287

29,95867,9101,534,806

6,517,867

Accounts payable – other78,655

109,145

Accrued expenses

155,410

102,519922

879

203,692

33,948

Income taxes payable

Fixed Assets

Machinery and equipment

7th Period(December 31, 2020)

Consumption tax payable
Deposits received
Total current liabilities

301

3,085

2,003,746

6,835,355

Non-current liabilities
Investment corporation bond

1,100,000

1,100,000

Long-term loan payable

24,297,106

19,524,374

Total non-current liabilities

25,397,106

20,624,374

27,400,853

27,459,730

Total liabilities
Net assets
Unitholders' equity
Unit holders’ capital

22,050,175

22,050,175

Deduction from unitholders’ capital(1,010,472)(1,174,155)

Unitholders’ capital (net value)

21,039,702

20,876,019

Unappropriated retained earnings (Accumulated deficit)

691,823

716,565

Total surplus

691,823

716,565

Surplus

Total unitholders' equity
Total net assets
Total liabilities and net assets

21,731,525※1

21,731,525
49,132,379

21,592,585※1

21,592,585
49,052,315

Investments and other assets
Long-term prepaid expenses
Deferred tax assets

15

13

Long-term deposit-

15,600

Guarantee deposits

37,79037,790Total investment and other assets

322,230

322,690

45,907,391

45,670,799

Investment corporation bond issuance cost

7,656

6,776

Total deferred assets

7,656

6,776

49,132,379

49,052,315

Total fixed assets
Deferred Assets

Total Assets

58

59

Ⅲ. Statement of Income

Ⅳ. Statements of Changes in Unitholders’ Equity(Unit: thousand yen)

6th period(from January 1, 2020
to June 30, 2020)

6th Fiscal Period (From January 1, 2020 to June 30, 2020)

7th period(from July 1, 2020
to December 31, 2020)

Unitholders’ capital※1

Total operating revenues

2,331,291※1

2,331,291

2,413,625
2,413,625※1

Total net
assets

22,050,175(700,678)

21,349,496

534,065534,065

21,883,561

21,883,561

1,362,007※1

1,409,487

Distribution inexcess of
earnings－(309,794)(309,794)－－(309,794)(309,794)

Asset management fee

59,40761,062Administrative service fees

19,402

18,994

Dividend of
surplus－－－(534,048)(534,048)(534,048)(534,048)

2,400

Net Income

－

－

－

691,807691,807691,807691,807

Total changes of
items during theperiod－(309,794)(309,794)

157,758

157,758(152,035)(152,035)※1
22,050,175(1,010,472)

21,039,702

691,823

691,823

21,731,525

21,731,525

Director’s compensation

2,400

Taxes and duties

101

436

Other operating expenses

47,60362,912

Total operating expenses

1,490,922

1,555,292

840,369

858,332

Interest income

13

14

Insurance income

-

1,219

Interest on refund

400-

Operating income or loss
Non-operating incomes

Other non-operating income
Total non-operating income

※2

413

※2

Interest expenses

3,894

3,937

879

879

30,701

56,792-

4,787

148,053

177,721

Ordinary income

692,729

717,346

Income before income taxes

Borrowing-related expenses

Loss on retirement of non-current assets
Total non-operating expenses

692,729

717,346

Income taxes - current

924

881

Income tax - deferred(2)2

Total income taxes
Net income
Retained earnings (deficit) brought forward
Unappropriated retained earnings (Accumulated deficit)

921

883

691,807

716,46216

103

691,823

716,565(Unit: thousand yen)

Unitholders’ equity
Unitholders’ capital

Surplus

Deduction
fromUnitholders’
Unitholders’unitholders’ capital(net)capitalcapitalBalance as ofJanuary 1, 2020

111,324

Amortization of investment corporation bond issuance cost

7th Fiscal Period (From July 1, 2020 to December 31, 2020)

36,735112,576

Interest on investment corporation bond

Balance as ofJune 30, 2020

35,501Non-operating expenses

60

Balance as ofJanuary 1, 2020

Total
unitholders’
Total surplus
equityCapitalsurplus or
loss

Changes of items
during the period

Operating expenses
Rental expenses of renewable energy power
generation facilities, etc.

Surplus

Deduction
fromUnitholders’
Unitholders’unitholders’ capital(net)capitalcapitalOperating revenues
Rental revenues of renewable energy power
generation facilities, etc.

(Unit: thousand yen)

Unitholders’ equity

Total
unitholders’
Total surplus
equityCapitalsurplus or
loss

Total net
assets

22,050,175(1,010,472)

21,039,702

691,823

691,823

21,731,525

21,731,525

Distribution inexcess of
earnings-(163,682)(163,682)--(163,682)(163,682)

Dividend of
surplus---(691,720)(691,720)(691,720)(691,720)

Net Income

-

-

-

716,462

716,462

716,462

716,462

Total changes of
items during theperiod-(163,682)(163,682)

24,742

24,742(138,940)(138,940)*1 22,050,175(1,174,155)

20,876,019

716,565

716,565

21,592,585

21,592,585

Changes of items
during the period

Balance as ofJune 30, 2020

61

Ⅴ. Notes
Summary of Significant Accounting Policies(from January 1, 2020 to June 30, 2020

Summary of Significant Accounting Policies(from July 1, 2020 to December 31, 2020)

1.Method of depreciation
and amortization of noncurrent assets(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major
property and equipment are as shown below:
Structures…………………………………… 22 - 25 years
Machinery and equipment………………… 22 - 25 years
Tools, furniture and fixtures………………… 22 - 25 years(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown
below:
Software…………………………………… 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.

1.Method of depreciation
and amortization of noncurrent assets

2.Method of deferredassets amortization

Investment corporation bond issuance cost
The straight-line method over the period until the redemption date is adopted.

3.Standards for revenue
and expense recognition

Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax,
among other taxes, on the infrastructure assets held, of the tax amount assessedand determined, the amount corresponding to the calculation period is accounted
as rental expenses. In addition, reimbursement such as fixed assets tax, which ispaid to the seller and other persons on the acquisition of infrastructure assets andother assets (“the amount equivalent to the fixed assets taxes and other taxes”) is
not recognized as rental expenses but included in the acquisition cost of theconcerned infrastructure assets and other assets.

(1) Property and equipment
The straight-line method is adopted. In addition, the useful lives of major
property and equipment are as shown below:
Structures…………………………………… 22 - 25 years
Machinery and equipment………………… 22 - 25 years
Tools, furniture and fixtures………………… 22 - 25 years
Structures in trust…
25 years
Machinery and equipment in trust……
25 years
Tools, furniture and fixtures in
25 yearstrust…………………
(2) Intangible assets
The straight-line method is adopted. In addition, the useful life is as shown
below:
Software…………………………………… 5 years(3) Long-term prepaid expenses
The straight-line method is adopted.

2.Method of deferredassets amortization

Investment corporation bond issuance cost
The straight-line method over the period until the redemption date is adopted.

3.Standards for revenue
and expense recognition

Accounting for fixed assets tax
With respect to fixed assets tax, city planning tax and depreciable assets tax,
among other taxes, on the infrastructure assets held, of the tax amount assessedand determined, the amount corresponding to the calculation period is accounted
as rental expenses. In addition, reimbursement such as fixed assets tax, which ispaid to the seller and other persons on the acquisition of infrastructure assets andother assets (“the amount equivalent to the fixed assets taxes and other taxes”) is
not recognized as rental expenses but included in the acquisition cost of theconcerned infrastructure assets and other assets. In the fiscal period under

4.Method of hedge
accounting

5.Other significant mattersserving as the basis for
preparation of financial
statements(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets therequirements for special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments…Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the
CSIF’s Articles of Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, andthus the evaluation of effectiveness is omitted.

review, the amount equivalent to the fixed assets tax and other taxes
included in the acquisition cost of infrastructure assets and other assets is
527 thousand yen.

4.Method of hedge
accounting(1) Method of hedge accounting
Special treatment is adopted for the interest rate swap that meets therequirements for special treatment.
(2) Hedging instruments and hedged items:･Hedging instruments…Interest rate swap transaction･Hedged items….Interest rate on loans(3) Policy for hedging
CSIF conducts derivative transactions to hedge risks as set forth in the
CSIF’s Articles of Incorporation according to the rules for risk management.
(4) Method of evaluation of effectiveness of hedging
The interest rate swap meets the requirements for special treatment, andthus the evaluation of effectiveness is omitted.

5.Other significant mattersserving as the basis for
preparation of financial
statements(1) Accounting treatment with regard to trust beneficiary interest in real estateWith regards to trust beneficial interest in equipment of renewable energy
power plants, all assets and liabilities within entrusted assets as well as all
revenue and expense items which occur to entrusted assets are recorded as
the respective account titles on the balance sheet and statements of income.
The following important account titles among the entrusted assets which arerecorded as the respective account titles are separately indicated on thebalance sheet:
Structures in trust, Machinery and equipment in trust,Tools, furniture andfixtures in trust, Land in trust.

Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from thecorresponding transaction amount.

(2) Accounting for Consumption tax
Consumption tax and local consumption tax are excluded from thecorresponding transaction amount.

62

63

Ⅴ. Notes
Notes to Balance Sheet*1 Minimum net assets stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment
Corporations*2 Breakdown of other non-operating income(Unit: thousand yen)

(Unit: thousand yen)

As of June 30, 2020

As of December 31, 2020
50,00050,000*2 JPY amount of a decrease in acquisition price for machine and equipment of S-13 CS Mashiki-machi PV
Power Plant(Unit: thousand yen)

As of June 30, 2020

As of December 31, 2020-

332,606

Notes to Statement of Income(Unit: thousand yen)

From January 1, 2020
to June 30, 2020

From July 1, 2020
to December 31, 2020

*1 Breakdown of profits and losses from the rental
business of renewable energy power generation
facilities, etc.

(Incidental income)
Total operating revenue from the rental business ofrenewable energy power generation facilities, etc.

−

35,478Notes to Statements of Changes in Unitholders’ Equity*1 Total number of authorized investment units and the total number of investment units issued andoutstanding
From January 1, 2020
To June 30, 2020

From July 1, 2020
To December 31, 2020

Total number of authorized investment
units

10,000,000 unit

10,000,000 unit

Total number of investment units issued
and outstanding

231,190 unit

231,190 unit

Notes on Tax Effect Accounting
1.Breakdown of deferred tax assets and deferred tax liabilities by major cause

Rental revenue of renewable energy power
generation facilities, etc.
(Variable rent linked to actual output)

From July 1, 2020
to December 31, 2020

Reversal of accumulated depreciation corresponding to
impairment of the acquisition price of S-13 Mashiki-machi
Power Plant

A. Operating revenue from the rental business ofrenewable energy power generation facilities, etc.

(Basic rent)

From January 1, 2020
to June 30, 2020

Fiscal period ended

June 30, 2020

December 31, 2020

Accrued business tax not deductible from taxable
income1,646,317

1,698,289

684,879

715,32594

112,331,291

2,413,625(Unit: thousand yen)

Fiscal period ended

15

13

Total deferred tax assets

15

13

Net amount of deferred tax assets

15

13

2.Breakdown of each major item that causes a significant difference between the effective statutory tax rate
and the rate of the burden of corporate tax and other taxes after the application of tax effect accounting(Unit: thousand yen)

B. Operating expenses from the rental business ofrenewable energy power generation facilities, etc.
Rental expenses of renewable energy power
generation facilities, etc.
(Management entrustment expenses)(Repair and maintenance costs)

159,491

191,46398

8,585(Taxes and duties)

223,768

223,744(Utilities expenses)−−(Insurance expenses)

22,112

24,676(Depreciation expenses)

911,865

913,915(Land rent)

44,67046,502(Trust fees)−

600(Other rental expenses)−−

1,362,007

1,409,487

969,284

1,004,138

Total operating expenses from the rental business ofrenewable energy power generation facilities, etc.
C. Profits and losses from the rental business of renewableenergy power generation facilities, etc. (A-B)

64

Effective statutory tax rate

Fiscal period ended

Fiscal period ended

June 30, 2020

December 31, 2020

31.46%

31.46%(Adjustment)
Dividends paid deductible for tax purpose(31.41)%(31.42)%Others

0.09%

0.08%

Rate of burden of corporate tax and other taxes after theapplication of tax effect accounting

0.14%

0.12%

65

Ⅴ. Notes
Notes on Financial Instruments
For the 6th fiscal period (From January 1, 2020 to June 30, 2020)
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial
institutions, issuring investment corporation bond or issuing investment units. The basic policy is tobuild stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition ofmanaged assets and are exposed to interest rate fluctuation risk and liquidity risk, among otherrisks. However, this risk is deducted through the appropriate balancing of the loan period and theinterest rate type, and diversification of lenders, and the appropriate management of various typesof indexes, especially the general application of the upper limit of the ratio of interest-bearing, which
is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are nomarket prices, values are reasonably calculated. Since certain assumptions are used for the
calculation of fair values, they may change if different assumptions are used.
2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of June 30, 2020
and the difference between them. Financial instruments whose fair values are extremely difficult toestimate are not included in the table.

(6) Derivative transaction
1. Those to which hedge accounting is not applied
Not applicable.
2. Those to which hedge accounting is applied
Method of hedge
accounting

Type of derivativetransactions and othermatters

Major items
hedgedSpecial treatment
of interest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

Long-termloans payable

Fair value

Longer than
one year

20,811,569

19,568,757(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (June 30, 2020)
Within one
year(1) Cash and deposits(2) Operating accounts
receivable
Total

Longer than
one year,within two
years

Longer than
two years,
within threeyears

Longer than
three years,
within four
years

Difference

2,627,638

2,627,638−(2) Operating accounts
receivable

477,976

477,976−

Total assets

3,105,615

3,105,615−(3) Current portion of long-termloans payable

1,534,806

1,536,238

1,432(4) Long-term loans payable

24,297,106

24,526,517

229,410(5) Investment corporation bond

1,100,000

1,086,690(13,310)

Total liabilities

26,931,912

27,149,446

217,533(6) Derivative transaction

－

－

－

Method ofcalculation ofsaid market
value(Note)-

Longer than
five years

－

－

－

－

－

477,976

－

－

－

－

－

3,105,615

－

－

－

－

－

(Unit: thousand yen)

Longer than
one year,within two
years

Longer than
two years,
within threeyears

Longer than
three years,
within fouryears

Longer thanfour years,
within fiveyears

Longer than
five years

1,534,806

－

－

－

－

－

－

5,986,293

1,286,533

1,285,273

1,242,792

14,496,212

－

－

－

－

1,100,000－

1,534,806

5,986,293

1,286,533

1,285,273

2,342,792

14,496,212

Within one
year(3) Current portion of longterm loans payable(4) Long-term loans
payable(5) Investment corporation
bond
Total

(Unit: thousand yen)

Longer thanfour years,
within fiveyears

2,627,638(Note 3) Scheduled redemption amount of loans payables after the closing date (June 30, 2020)(1) Cash and deposits

Fair value(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value ispresented together with the fair value of (Note 1) (3) Current portion of long-term loans payable and (4) Longterm loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial instruments,
among other matters” .

(Unit: thousand yen)Book value

Contract amount and otheramounts(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
Liabilities(3) Current portion of long-term loans payable (4) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to (6) 2. below), the fair value is measured by discounting the total sum of the principal andinterest treated together with the said interest rate swap as one at the interest rate that is applied when the similar loan is
obtained and that is reasonably estimated.
(5) Investment corporation bondFair value is based on market value.

66

67

Ⅴ. Notes
For the 7th fiscal period (From July 1, 2020 to December 31, 2020)
1.Situation of financial instruments(1) Policy for financial instruments
CSIF procures funds for acquiring new assets or repaying loans through loans from financial
institutions, issuring investment corporation bond or issuing investment units. The basic policy is tobuild stable and sound financial operations to maintain and increase earnings in the medium to longterm and grow the size and value of assets(2) Details of the financial instruments and their risks and the risk management system
Long-term loans payables are one of the means to procure the funds for the acquisition ofmanaged assets and are exposed to interest rate fluctuation risk and liquidity risk, among otherrisks. However, this risk is deducted through the appropriate balancing of the loan period and theinterest rate type, and diversification of lenders, and the appropriate management of various typesof indexes, especially the general application of the upper limit of the ratio of interest-bearing, which
is 60%.
(3) Supplementary explanation on fair value of financial instruments
The fair values of financial instruments are values based on market prices, or if there are nomarket prices, values are reasonably calculated. Since certain assumptions are used for the
calculation of fair values, they may change if different assumptions are used.
2. Matters relating to fair values of financial instruments
The table below shows the book value and fair values of financial instruments as of December 31,
2020 and the difference between them. Financial instruments whose fair values are extremely difficult
to estimate are not included in the table.
(Unit: thousand yen)Book value

Fair value(7) Derivative transaction
1. Those to which hedge accounting is not applied
Not applicable.
2. Those to which hedge accounting is applied
Method of hedge
accounting

Type of derivativetransactions and othermatters

Major items
hedgedSpecial treatment
of interest rate
swap

Interest rate swap
transaction
Fixed
payment/variable
receipt

Long-termloans payable

2,828,532

2,828,532-(2) Operating accounts
receivable362,206

362,206-(3) Long-term deposits

15,60015,600-Total assets

3,206,339

3,206,339-(4) Current portion of long-termloans payable

6,517,867

6,509,162(8,704)(5) Long-term loans payable

19,524,374

19,684,965

160,591(6) Investment corporation bond

1,100,000

1,088,120(11,880)

Total liabilities

27,142,241

27,280,052

140,006(7) Derivative transaction

-

-

-

Longer than
one year

20,187,606

18,939,441

Fair value

Method ofcalculation ofsaid market
value(Note)-(Note) Those that are subject to special treatment of interest rate swap are treated together with the current portion of
long-term loans payable and the long-term loans payable to be hedged as one, and thus their fair value ispresented together with the fair value of (Note 1) (4) Current portion of long-term loans payable and (5) Longterm loans payable in “Notes on financial instruments 2.Matters relating to fair values of financial instruments,
among other matters” .
(Note 2) Scheduled redemption amounts of monetary receivables after the closing date (December 31, 2020)
Longer than
one year,within two
years

Within one
year(1) Cash and deposits(2) Operating accounts
receivable(3) Long-term deposits
Total

Longer than
two years,
within threeyears

Longer than
three years,
within fouryears

Longer than
five years

2,828,532

-

-

-

-

-

362,206

-

-

-

-

-

-

15,600----15,600---3,109,739

Longer than
one year,within two
years

Within one
year(4) Current portion of longterm loans payable(5) Long-term loans
payable(6) Investment corporation
bond
Total

(Unit: thousand yen)

Longer thanfour years,
within five
years

(Note 3) Scheduled redemption amount of loans payables after the closing date (December 31, 2020)

Difference(1) Cash and deposits

Contract amount and otheramounts

Longer than
two years,
within threeyears

Longer than
three years,
within fouryears

6,517,867---

1,860,238--

6,517,867

1,860,238(Unit: thousand yen)

Longer thanfour years,
within fiveyears

Longer than
five years

-

-

-

1,292,889

1,254,936

1,291,266

13,825,044-

1,100,000--

1,292,889

2,354,936

1,292,266

13,825,044(Note 1) Methods used for estimating the fair values of financial instruments and matters related to derivative transactions
Assets(1) Cash and deposits (2) Operating accounts receivable
These financial instruments are settled in the short term, and their fair values are deemed to approximate their book value.
Therefore, the book values are used as the values.
(3) Long-term deposits
These financial instruments are fixed deposits and there is no significant fluctuation between estimated interest rates upon
new deposit and engaged rates of interest and their fair market values approximate their book values. Therefore, the bookvalues are used as the values.
Liabilities(4) Current portion of long-term loans payable (5) Long-term loans payable
With respect to long-term loans payable at variable interest rates, the condition that the interest rates are renewed every
certain period is applied to loans, and thus the market value is considered to be close to the book value. Accordingly, thebook value is used. In addition, for the long-term loans payable at variable interest rates subject to the special treatment ofinterest rate swap (refer to (7) 2. below), the fair value is measured by discounting the total sum of the principal andinterest treated together with the said interest rate swap as one at the interest rate that is applied when the similar loan is
obtained and that is reasonably estimated.
(6) Investment corporation bondFair value is based on market value.

68

69

Ⅴ. Notes
Notes on Investment and Rental Property
CSIF has renewable energy power generation facilities, etc. The book value change during the period andfair value at the end of the period are as shown below.
(Unit: thousand yen)

Fiscal period ended

Fiscal period ended

June 30, 2020

December 31, 2020

Notes on Related Party Transaction
For prior period (from January 1, 2020 to June 30, 2020)

Attribute

Name

Book value (Note 2)
Beginning balance

46,473,806

45,572,640

Change during theperiod (Note 3)(901,166)(243,115)

Ending balance

45,572,640

45,329,524

Fair value at the endof the period (Note 4)

49,588,000

48,890,000(Note 1) The real estate that CSIF holds is real estate to be provided for the use of renewable energy power generation facilities, and thus
with respect to the book value and the fair value, the amount of the renewable energy power generation facilities and real estate
are stated together as one.
(Note 2) The book value for is the amount at acquisition cost less the accumulated depreciation.
(Note 3) The change during the period ended June 30, 2020 primarily consisted of the increase due to capital expenditure for one
photovoltaic power generation facility (10,699 thousand yen), and the decrease due to depreciation expenses (911,865 thousandyen). And the change during the period ended December 31, 2020 primarily consisted of the increase due to acquisition of two
photovoltaic power generation facilities (929,496 thousand yen), and the decrease due to depreciation expenses (913,915
thousand yen).
(Note 4) The fair value is the total sum of the median amount that we calculated according to Article 41, paragraph 1 of the CSIF's Articles
of Incorporation on the basis of the appraised value in the range stated in the valuation report with the date of the value opinion
on June 30, 2020 and December 31, 2020, which was obtained from PricewaterhouseCoopers Sustainability LLC (for S-01 toS-18). And, the fair value is the total sum of the median amount on the basis of the appraised value stated in the valuation reportwith the date of the value opinion on June 30, 2020 and December 31, 2020, which was obtained from Ernst & Young
Transaction Advisory Services Co., Ltd. or Ernst & Young Strategy and Consulting Co., Ltd. (for S-19 to S-23). Please note that
E&Y Transaction Advisory Services Co., Ltd. and Ernst & Young Advisory and Consulting Co., Ltd. have been integrated andthose were incorporated as E&Y Strategy and Consulting Co., Ltd. as of October 1, 2020.

Interested
Canadian
Party of
Solar O&M
Asset
Japan K.K.
Manager

50F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, Tokyo
JAPAN

Business

Operation
100,000 and
Maintenance

Number
of
Units
Hold
(Held)-

Relationship
Concurrent Business
Position of Relation
Executive
ship
Outsourcing
Notof
applica Operati
ble
on andMaintenance

Transaction

Payme
nt of
O&M
Fee

Transaction
Amount(in JPY
thousand)Account(Note 1)
(Note 2)

159,272

EndingBalance(in JPY
thousand)(Note 1)

Accounts
Payable29,958(Note 1) The amounts exclude consumption taxes.
(Note 2) The condition of transactions are referring to market prices etc.

For current period (from July 1, 2020 to December 31, 2020)

Attribute

Name

Address

CS
Hokkaido
Ishikari G.K.
13,86250F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, TokyoJAPANCS Miyagi
Kejonuma
G.K.

50F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, Tokyo
JAPANInterested
Canadian
Party of
Solar O&M
Asset
Japan K.K.
Manager

50F
Shinjuku
MitsuiBldg., Nishishinjuku
2-1-1,
Shinjukuku, TokyoJAPAN

RelatedParty of
Main
Investor

In addition, profits and losses from the renewable energy power generation facilities, etc. for the fiscal
period ended December 31, 2019 (the 5th period) and the fiscal period ended June 30, 2020 (the 6th
period) are as stated in the “Notes to statement of income” above.
Notes on Restriction for Asset Management
Not applicable.

Address

Capital(in JPY
thousand)

RelatedParty of
Main
Investor

Capital(in JPY
thousand)00Business

Development,Acquisition,
Building,
PosessionandOperation,etc. of
Renewableenergypower
generation
facilities, etc.
Development,Acquisition,
Building,
PosessionandOperation,etc. of
Renewableenergypower
generation
facilities, etc.

Operation
100,000 and
Maintenance

Number
of
Units
Hold
(Held)

RelationshipTransaction
Amount(in JPY
thousand)EndingBalance(in JPY
thousand)Concurrent Business
Position of Relation
Executive
ship

Trans
action-Acquisition of
Solar
Not
Power
applica
Generabletion
Facilities

Acquisition of
Solar
Power
Generation
Facilities

680,000---

Acquisition of
Solar
Not
Power
applica
Generabletion
Facilities

Acquisition of
Solar
Power
Generation
Facilities

208,000---

Outsourcing
Notof
applica Operati
ble
on andMainte
nance

Payme
nt of
O&M
Fee

191,245

Accounts
PayableAccount(Note 1)
(Note 2)

(Note 1)

67,910(Note 1) The amounts exclude consumption taxes.
(Note 2) The condition of transactions are referring to market prices etc.

7071

Ⅴ. Notes
Notes on Subsequent Event after the Balance Sheet Date
For the 6th fiscal period (From January 1, 2020 to June 30, 2020)
Not applicable.

Notes on Per Unit Information
Prior fiscal period

Current fiscal period

From January 1,2020
to June 30, 2020
Net assets per unit
Net income per unit

From July 1, 2020
December 31, 2020
Net assets per unit
Net income per unit

93,998 yen
2,992 yen

Net income per unit is calculated by dividing net
income by the average number of investment units
during the period.
With respect to diluted profit per unit for the period,
there are no dilutive investment units, and thus thestatement is omitted.

93,397 yen
3,099 yen

For the 7th fiscal period (From July 1, 2020 to December 31, 2020)(ⅰ) Issuance of Investment Corporation Bonds (Green Bonds)
CSIF issued investment corporation bonds (“Green Bonds”) based on the shelf registration for its issuance ofinvestment corporation bonds filed to Kanto Local Finance Bureau as of January 26, 2021.

Net income per unit is calculated by dividing net
income by the average number of investment units
during the period.
With respect to diluted profit per unit for the period,
there are no dilutive investment units, and thus thestatement is omitted.

① NameCanadian Solar Infrastructure Investment Corporation / The 1st
Unsecured Bond (Green Bonds)② Total issue amount③ Form of the bond certificate(Note) The basis of calculation of net income (net loss) per unit is as follows.

3,800 million yen
Subject to the provisions of the Act on Book-Entry Transfer ofCompany Bonds, Shares, etc. bond certificates will not be issued.

Net income (Net loss) (Thousand yen)Amount not attributable to common unit holders(Thousand yen)

Prior fiscal period

Current fiscal period④ Issue price

100 yen per par value of 100 yen for each bondFrom January 1, 2020
to June 30, 2020

From July 1, 2020
December 31, 2020

⑤ Redemption price

100 yen per par value of 100 yen for each bond

⑥ Interest rate

0.80% per annum⑦ Denomination of each bond

100 million yen

691,807

716,462--⑧ Offering method

Public offering
January 20, 2021

Net income (Net loss) attributable to Common unit
holders (Thousand yen)

691,807

716,462⑨ Offering period

Average number of investment units during the period(Units)⑩ Payment date

January 26, 2021

231,190

231,190⑪ Collateral / Guarantee

No collateral or guarantee is provided for the Green Bonds.
None of CSIF’s assets are secured for the Green Bonds.

⑫ Redemption method anddate

The total amount of the Green Bonds will be redeemed on
January
26, 2026 (5-year bond) Early redemption is possible any timeafter the payment date,except for the case separately determinedby the depositary.

⑬ Interest payment date

January 26 and July 26 of every year (When an interest
paymentdate falls on a bank holiday it will be moved to thepreceding business day. Initial interest payment date will be July26, 2021)⑭ Credit rating

A (Japan Credit Rating Agency, Ltd.)⑮ Special financial covenant

Collateral provision restriction clause is added.

⑯ DepositaryJapan Securities Depositary Center, Inc.

⑰ Fiscal agent, issuing agent

Mizuho Bank, Ltd.

and payment agent⑱ Underwriter for private

Mizuho Securities Co., Ltd. and SMBC Nikko Securities Inc.

placement

72

73

Ⅵ. Statement of Cash Distribution

I Unappropriated retained earnings(accumulated deficit)
II Distributions in excess of retained earnings
Deduction from unitholders’ capital
III Cash distributions(Cash distributions per unit)
Profit distributions(Profit distributions per unit)
Distributions in excess of retained earnings(Distributions in excess of retained earnings)
IV Retained earnings (deficit) carried forward
Calculation method for cash
distributions

74

Fiscal Period under Review

Fiscal Period under Review(From January 1, 2020
to June 30, 2020)(From July 1, 2020
to December 31, 2020)

691,823,858Yen

716,565,873Yen

163,682,520Yen
855,403,000Yen(3,700)Yen
691,720,480Yen(2,992)Yen
163,682,520Yen(708)Yen
103,378Yen
In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’)s Articles of Incorporation, theamount of cash distributions
shall be the amount of profit inexcess of an amount equivalent
to 90% of distributable profits, as
stipulated in Article 67-15 of the
Act on Special Measures
Concerning Taxation. Based on
this policy, CSIF decided tomake distributions of¥691,720,480 which is the entire
amount equivalent to theunappropriated retained
earnings for the fiscal period
under review of ¥691,823,858
excluding fractions of the
distribution per unit that are lessthan ¥1.
CSIF distributes cash inexcess of retained earnings
every fiscal period based on the
cash distribution policy
prescribed in Article 47,
Paragraph 2 of CSIF’s Articles ofIncorporation. Based on thispolicy, CSIF decided to makecash distributions in excess ofearnings (return of capital
categorized as a distribution of
the reduction in capital for
Japanese tax purposes) in theamount of ¥163,682,520 whichis equivalent to 17.9% of theamount of depreciation
expenses recorded for the fiscal
period under review of¥912,259,006.
Accordingly, the distribution
per unit is ¥3,700.

138,945,190Yen
855,403,000Yen(3,700)Yen
716,457,810Yen(3,099)Yen
138,945,190Yen(601)Yen
108,063Yen
In accordance with Articles 47,
Paragraph 1 of Canadian Solar
Infrastructure Fund, Inc. (“CSIF’)s Articles of Incorporation, theamount of cash distributions
shall be the amount of profit inexcess of an amount equivalent
to 90% of distributable profits, as
stipulated in Article 67-15 of the
Act on Special Measures
Concerning Taxation. Based on
this policy, CSIF decided tomake distributions of¥716,457,810 which is the entire
amount equivalent to theunappropriated retained
earnings for the fiscal period
under review of ¥716,565,873
excluding fractions of the
distribution per unit that are lessthan ¥1.
CSIF distributes cash inexcess of retained earnings
every fiscal period based on the
cash distribution policy
prescribed in Article 47,
Paragraph 2 of CSIF’s Articles ofIncorporation. Based on thispolicy, CSIF decided to makecash distributions in excess ofearnings (return of capital
categorized as a distribution of
the reduction in capital for
Japanese tax purposes) in theamount of ¥138,945,190 which isequivalent to 15.2% of theamount of depreciation
expenses recorded for the fiscal
period under review of¥914,309,028.
Accordingly, the distribution
per unit is ¥3,700.

(Note) Distributions in excess of retained earnings per unit will generally be based on the cash distribution policy prescribed in CSIF’s
Articles of Incorporation and the Asset Manager’s asset management guideline.
CSIF intends to make cash distributions of NCF within the FCF generated from the renewable energy power generation facilities.
The amount available for distribution shall be calculated by multiplying NCF by the payout ratio.
Further, CSIF intends to make distributions in excess of retained earnings for each fiscal period in order to realize such policy.
CSIF’s forecasts (including revised forecasts) for each fiscal period are based on the assumption of the Forecast Power
Generation (P50) provided in the independent technical report which is used as a basis for calculating rents for renewable energy
power generation facilities and if actual NCF calculated based on actual power generation during the applicable fiscal period
exceeds forecast NCF, CSIF’s policy is to set “forecast NCF multiplied by the payout ratio” as the upper limit of the amount of cash
distributions for the applicable fiscal period.
On the other hand, if actual NCF is less than forecast NCF, CSIF’s policy is to set “actual NCF multiplied by the payout ratio” as theamount of cash distributions for the applicable fiscal period.
Based on this policy, CSIF decided to make distributions for the previous fiscal period of ¥855,403,000 which is within
the limitation of 95% of forecast NCF amount for the fiscal period under review of ¥902,632,000 and equivalent to 94.7%of that. Of this, ¥163,682,520 which is the amount less of distributions of profit of ¥691,720,480 is distributions in excess
of retained earnings.
Based on this policy, CSIF decided to make distributions for the current fiscal period of ¥855,403,000 which is equivalent
to 89.0% of forecast NCF amount for the fiscal period under review of ¥960,272,000. Of this, ¥138,945,190 which is theamount less of distributions of profit of ¥716,457,810 is distributions in excess of retained earnings.

75

Ⅶ. Statement of Cash Flow(unit: thousand yen)

6th period

7th period(From January 1, 2020
to June 30, 2020)(From July 1, 2020
to December 31, 2020)

Income (Loss) before income taxes

692,729

717,346

Depreciation cost

912,259914,309

Investment corporation bond issuance expenses

879

879

Interest income

(13)

(14)

116,471

115,261

Cash flows from operating activities

Interest expenses
Other non-operating income(35,501)

Loss on retirement of non-current assets

4,787

Decrease (Increase) in operating accounts receivable(209,049)

Decrease (Increase) in consumption taxes receivable

329,815

115,770(26,241)

Decrease (Increase) in consumption taxes payable

195,374(169,743)

Decrease (Increase) in prepaid expenses

47,606(45,710)Decrease (Increase) in long-term prepaid expenses

31,694

15,137

Increase (Decrease) in operating accounts payable(3,030)37,951

Increase (Decrease) in accounts payable - other

11,18430,490

Increase (Decrease) in accrued expenses

54,026(53,510)

Other, net(2,200)2,453

Sub-total

2,177,748

1,623,665

Interest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

13

14(117,120)(114,642)

(862)

(925)

2,059,778

1,508,112

Cash flows from investing activities
Deposit into fixed deposits
Purchases of property and equipment(7,800)※1

Net cash provided by (used in) investing activities(21,259)※1(646,543)(21,259)(654,343)

Proceeds from long-term loans payable−

1,000,000

Repayment of long-term loans payable

Cash flows from financing activities(1,041,093)(789,671)

Dividends paid

(534,048)(691,720)

Surplus earning distribution paid

(309,794)(163,682)

Net cash provided by (used in) financing activities(1,884,936)(645,074)

Net increase (decrease) in cash and cash equivalents

153,581

208,694

Cash and cash equivalents at the beginning of the fiscal
period2,466,256

2,619,838

Cash and cash equivalents at the end of the fiscal period

76※22,619,838※2

Summary of Significant Accounting Policies

Scope of funds instatement of cash flows

From January 1, 2020
To June 30, 2020

From July 1, 2020
To December 31, 2020

Funds (cash and cash equivalents) instatement of cash flows consist of cashon hand, demand deposits and shortterm investments with a maturity of
three months or less at the date ofacquisition that can readily beconverted into cash and that are
subject to insignificant risks of changes
in value.

Funds (cash and cash equivalents) instatement of cash flows consist of cashon hand, demand deposits and shortterm investments with a maturity of
three months or less at the date ofacquisition that can readily beconverted into cash and that are
subject to insignificant risks of changes
in value.

Notes to Statement of Cash Flows*1 Relationship between the ending balance of cash and cash equivalents and the amounts on the balance
sheet
From January 1, 2020
To June 30, 2020
*1 Summary of purchases of property and equipment(as of June 30, 2020)
Purchase prices ofproperty and equipment in
6th period
Retrun of purchase prices
of property andequipment purchased inprevious years
Purchase prices ofproperty and equipment(unit: thousand yen)

(21,259)(21,259)*2 Relationship between the ending balance of cash
and cash equivalents and the amounts on thebalance sheet(as of June 30, 2020)

From July 1, 2020
To December 31, 2020
*1 Summary of purchases of property and equipment(as of December 31, 2020)
Purchase prices ofproperty and equipment in
7th period
Retrun of purchase prices
of property andequipment purchased inprevious years
Purchase prices ofproperty and equipment

2,627,638(7,800)2,619,838(980,537)

333,933(646,543)*2 Relationship between the ending balance of cash
and cash equivalents and the amounts on thebalance sheet(as of December 31, 2020)(unit: thousand yen)

Cash and deposits
Term deposits over threemonthsCash and cash
equivalents(unit: thousand yen)(unit: thousand yen)

Cash and deposits
Term deposits over threemonthsCash and cash
equivalents

2,828,532-

2,828,532

2,828,532

77